100% Deduction for Business Cars in Slovakia
Starting from 2026, Slovakia implemented new rules for VAT deduction on company cars. While most vehicles used for mixed (business and private) purposes are limited to a 50% flat-rate VAT deduction, a 100% deduction remains possible if specific strict legal conditions are met to prove exclusive business use.
Conditions for 100% VAT Deduction
To qualify for a full 100% VAT deduction on a vehicle acquired or leased from 2026 onwards, the following requirements must be fulfilled:
Exclusive Business Use:
The vehicle must be used solely for business activities. Personal use, including commuting between home and work, disqualifies the vehicle from the 100% regime.
Electronic Logbook:
Detailed electronic driving records must be maintained (e.g., in Excel or a processable format) for each vehicle. Scanned PDFs of manual logs are not sufficient.
Notification to Tax Authority:
A specific new notification form released in February 2026 must be submitted to the Slovak Financial Administration by the VAT return deadline for the period in which the deduction is first claimed. For example, for a vehicle acquired in February 2026, the notification is generally due by 25th March 2026.
Exemptions
Certain categories like taxis, driving schools, and rental vehicles are exempt from the electronic record-keeping requirement but must still be reported