From 1 July 2025, Slovakia introduces a 50% limitation on VAT deduction for certain motor vehicles that are not used exclusively for business purposes, including most passenger cars (category M1) and certain motorcycles.

 

What this means in practice:

• If a vehicle is partly used for private purposes (e.g. assigned to employees with 1% taxation), only 50% of input VAT may be claimed on its acquisition, leasing, repairs, maintenance, spare parts and fuel.

• Simultaneously, such private use is not considered a taxable supply, provided the 50% limitation is applied.

 

Exemptions from the limitation:

The rule does not apply to vehicles intended for:

• resale, rental or leasing,
• taxi or paid passenger transport,
• driving schools, driver training or replacement vehicles.
   

 

Effective period: from 1 July 2025 to 30 June 2028

Source: Council Implementing Decision (EU) 2025/852