Car Purchase in Slovakia: VAT Deduction Rules in 2026

New VAT Deduction and Income Tax Rules for Motor Vehicles in Slovakia

If you are considering a car purchase in Slovakia, it is important to know that starting January 1, 2026, significant changes will affect how VAT deduction and income tax are applied to motor vehicles.
These changes are part of the Slovak fiscal consolidation package and will impact nearly all entrepreneurs who buy or use cars for business purposes in the Slovak Republic.

💡 Tip for foreign entrepreneurs:
You can buy a VAT-registered company in Slovakia and purchase a car under this company’s name.
This allows you to claim VAT deduction on the vehicle in accordance with Slovak VAT law.

 

New VAT Rules for Car Purchase in Slovakia (Effective from January 1, 2026)

The new Slovak VAT rules apply to passenger vehicles with an acquisition cost (excluding VAT) or own costs above €1,700, which will be acquired or used under long-term rental agreements between January 1, 2026 and June 30, 2028.

• For these vehicles, the VAT deduction is limited to 50%.
• This limitation does not apply to vehicles intended for resale, accounted for as inventory.
• Use of such a vehicle for non-business purposes is not treated as a taxable supply of goods or services under the Slovak VAT Act.

These rules directly affect any company car purchase in Slovakia made after 2025.

 

100% VAT Deduction – Limited Exceptions

A full 100% VAT deduction is allowed only if the car is used exclusively for business activities in Slovakia, in the following cases (§ 85n paras. 4–5 of the Slovak VAT Act):

• short-term or long-term vehicle rental,
• passenger transport and taxi services,
• operation of a driving school,
• demonstration, test, or replacement cars,
• or vehicles with electronic driving records proving exclusive business use.

To claim a 100% VAT deduction for a car in Slovakia, the taxpayer must keep electronic records of every vehicle, including VIN, license plate, mileage logs, driver details, trip purpose, and all expenses (repairs, maintenance, fuel, etc.).

If you buy a VAT-registered company in Slovakia, you can purchase a vehicle under that company and — if it is used for business purposes — deduct up to 100% of the VAT.
This is a legal and fully compliant method often used by foreign entrepreneurs operating through SetupMART.com.

 

Notification Obligation to the Slovak Tax Authority

When a car is used exclusively for business purposes, the company must notify the Slovak Tax Authority (Finančná správa SR):

• within the VAT return period when the deduction was claimed, or
• by December 31, 2026, if the exclusive business use begins on January 1, 2027.

Any change in vehicle usage (from mixed to exclusive business use) must also be reported.
This applies to all businesses registered for VAT in Slovakia that use vehicles as company assets.

 

VAT Deduction on Car-Related Goods and Services in Slovakia

From January 1, 2026, if a car is used for both business and private purposes, the company can deduct only 50% of VAT on related goods and services — such as fuel, repairs, maintenance, spare parts, or leasing.

The general rule of § 49(4) of the Slovak VAT Act still applies — meaning that even the deductible 50% must be adjusted by the VAT coefficient if the company performs both taxable and VAT-exempt activities.

This change will significantly affect all business car owners in Slovakia using vehicles for both professional and private purposes.

 

Flat-Rate Fuel Expenses and VAT Deduction in Slovakia

The 80% flat-rate deduction for fuel expenses remains valid under § 19(2)(l) of the Slovak Income Tax Act.
However, from 2026 it will no longer be possible to claim VAT deduction from these flat-rate fuel expenses unless the taxpayer can prove the business/private usage ratio of the vehicle.

Example: If you buy a Slovak VAT company through SetupMART.com, you can claim VAT deduction on car purchase and fuel expenses (according to the applicable proportion) as long as your company is a VAT payer in Slovakia.

 

Buying a Car in Slovakia Before December 31, 2025

Vehicles purchased in Slovakia before the end of 2025 are subject to the current, more favorable VAT deduction rules:

• Full 100% VAT deduction may be applied, provided that private use is taxed as a service, or
• A partial VAT deduction (e.g., 70%) can be applied based on real business usage.

Cars bought before 2026 will not fall under the new 50% VAT deduction limitation.
Therefore, entrepreneurs planning a car purchase in Slovakia may find it more advantageous to do so before the end of 2025.

 

Income Tax on Cars in Slovakia – Depreciation and Expenses

According to § 19 of the Slovak Income Tax Act:

• If the VAT deduction cannot be claimed, the VAT amount becomes part of the acquisition cost of the car.
• Depreciation can be applied in full or proportionally (e.g., 80% deductible, 20% non-deductible).
• For cars with an acquisition price above €48,000, the tax base must be adjusted (§ 19(3)(a) ZDP).
• As per transitional rules (§ 52zzzk), non-deductible VAT is not a tax-deductible expense.

These provisions apply to all Slovak businesses that buy or lease cars and record them as fixed assets — including those that purchase ready-made VAT-registered companies in Slovakia.

 

Company Car and Private Use in Slovakia

When an employee, director, or shareholder uses a company vehicle for private purposes in Slovakia, the following valuation applies:

• 0.5% per month of the car’s purchase price (including VAT) for BEV/PHEV vehicles,
• 1% per month for other vehicles,
• reduced annually by 12.5% during years 2–8 of usage.

These rates determine the non-monetary benefit (benefit-in-kind) subject to Slovak income tax and social contributions.

 

Comparison – Car Purchase Before vs. After 2025 in Slovakia

Car Purchase Period	VAT Deduction Possibility	Administrative Requirements	Tax Advantage
Before December 31, 2025	Up to 100% (depending on use)	Lower	✅ More advantageous
From Jan 1, 2026 to Jun 30, 2028	Typically 50%	High – record keeping & notifications	❌ Less advantageous

 

Conclusion: Plan Your Car Purchase in Slovakia Wisely

For entrepreneurs and companies operating in Slovakia, the timing of your car purchase can make a major tax difference.
From January 1, 2026, the VAT deduction on cars in Slovakia is limited to 50% for most users, and new administrative duties such as electronic driving records and notifications to the Slovak Tax Authority become mandatory.

If you are a foreign entrepreneur, you can buy a Slovak VAT-registered company through SetupMART.com, purchase a vehicle under it, and legally deduct VAT according to Slovak law.
This option gives you a fast, compliant way to enter the Slovak market and optimize your car purchase in Slovakia with VAT benefits.