VAT on company cars from 2026: a 50 per cent flat-rate charge or a 100 per cent deduction? A practical guide
A company car has always been a combination of mobility, costs, and record-keeping. As of 1 January 2026, VAT payers face a new decision: for selected passenger vehicles also used for private purposes, a flat-rate VAT deduction of 50% applies. A full 100% deduction remains possible, but for a vehicle used exclusively for business it is linked to detailed record-keeping and additional conditions.
So it is not a universal statement that "from 2026 you can only deduct half of the VAT from a car". What matters is the vehicle category, the way it is used, the date of acquisition or lease, and whether it is possible to prove its exclusive business use.
What has changed since 1 January 2026
For specified categories of passenger motor vehicles acquired or long-term leased in the period from 1 January 2026 to 30 June 2028, a flat-rate VAT deduction of 50% applies in the case of mixed use. Mixed use means that the car is used for business as well as for another purpose, for example private use.
The flat-rate 50% does not apply only to the acquisition of the vehicle itself. The Financial Administration states that in the case of mixed use, the 50% regime also applies to related goods and services, such as fuel, spare parts, servicing, parking fees, motorway vignettes or car accessories.
IMPORTANT: Important detail: From 1 January 2026, the 50% limit on related expenses may also apply to vehicles acquired or leased before this date, if they are used for mixed purposes.
When a 50% flat-rate deduction makes sense
The flat-rate scheme is especially practical when the car is genuinely used for private purposes as well, and there is no desire to prove every single trip as exclusively business-related. It reduces the administrative burden connected with detailed tracking of vehicle use for VAT purposes.
This does not mean that no documents are needed for the car. Accounting still requires an invoice or other accounting document, information about the vehicle, and a clear allocation of costs. The flat rate simplifies the VAT deduction ratio, not the entire life cycle of the car in the accounting records.
When a 100% VAT deduction is possible
If a vehicle is used exclusively for business and the legal conditions are met, a 100% deduction remains possible. The key is the ability to prove exclusive business use with detailed records. Under the new rules, the Tax Authority also points out the reporting obligation for vehicles acquired from 1 January 2026, for which a full deduction is applied if the conditions are met.
A practical problem arises when a company declares “exclusively for business”, but the reality is different. The car is parked at the director’s home, used at weekends, records are missing, or the data in the logbook does not match fuel and service documents. For a 100% deduction, a proper system is therefore crucial, not a one‑off completion of records at the end of the year.
50% versus 100%: quick comparison
What happens with fuel, servicing, and parking fees
Operating expenses are exactly where many mistakes are made in practice. If a car is subject to the 50% regime due to mixed use, the same principle applies to the relevant related goods and services. The accountant therefore needs to know which vehicle the document relates to and under which regime the vehicle is used.
If a company operates several cars, it may not be reasonable to treat them all the same. One vehicle may in reality be used exclusively for work, another may be mixed-use. The records should be able to distinguish between these situations.
Checklist before claiming the deduction
- consider the vehicle category and the date it was acquired or leased;
- determine whether its use is genuinely mixed or exclusively for business;
- for a 100% deduction, set up detailed electronic records before any issues arise;
- match fuel, servicing, parking and other expenses to a specific vehicle;
- for a new vehicle, check the notification obligation related to the full deduction;
- keep documents and consistent data – records must match reality.
Example: the managing director uses the car also on weekends
In April 2026, the company buys a passenger car that the managing director uses for meetings with clients, but also for private trips. If this is a vehicle and situation subject to the new regime, the natural starting point is the 50% flat-rate deduction. The company does not have to pretend exclusive business use just to maximise the deduction.
An approach that is defensible and manageable administratively is often more valuable than an aggressive setup that cannot be documented.
Do not combine the tax regime of a car with accounting “shortcuts”
VAT is only one layer. A company car also has accounting and tax implications in terms of acquisition, depreciation, operation, sale, or private use. Therefore, it is not advisable to take a single rule about 50% VAT and automatically apply it to all other taxes and costs. Each layer has its own rules.
When the way the vehicle is used changes – for example, when the car was originally used exclusively for business and later also privately – this information should be passed on to the accountant without delay. For VAT, there are mechanisms for adjusting the deducted tax, and a change in reality may also affect record-keeping obligations.
How we can help with this
We can manage your double-entry bookkeeping for you so that documents relating to your vehicle, VAT and operating costs aren't scattered between the bank, your email and a filing cabinet. By submitting documents regularly, we can keep track of the vehicle's usage on an ongoing basis and resolve any uncertainties before an audit or the annual accounts are prepared.
Questions and Answers | FAQ
1. Platí od roku 2026 vždy iba 50 % odpočet DPH z auta?
No. For mixed use of selected passenger vehicles, a 50% flat-rate regime applies, but for exclusive business use, a 100% deduction may be possible if the conditions are met.
2. Týka sa 50 % aj benzínu a servisu?
With relevant mixed use, yes – the Financial Administration lists among related items, for example, fuel, spare parts, servicing, parking fees, or a motorway vignette.
3. Stačí pri 100 % odpočte obyčajná kniha jázd?
The key is to meet the detailed record-keeping requirements set by law and to be able to prove exclusive business use. Formal records that do not reflect reality are risky.
4. Čo je externé vedenie účtovníctva?
This service involves having the accounting agenda handled by an external partner. The client thus gains professional processing without the need for an in-house accountant.
5. Môžem prejsť k vám od inej účtovníčky alebo firmy?
Yes. We will help with a smooth transition, taking over all materials, and setting up a new system of cooperation.
6. Môžem mať jednoduché účtovníctvo aj online?
Yes. Documents and supporting materials can also be processed electronically, which simplifies cooperation regardless of location.
7. Ako často dostanem spätnú väzbu alebo výstupy?
According to the agreement and the scope of the service. Usually on an ongoing basis throughout the year and always in a way that provides a clear overview of the agenda.
8. Čo sa stane po odoslaní nezáväznej objednávky?
After sending the non-binding order, all necessary information and instructions will be sent by e-mail. Depending on the nature of the request, a phone call may also be made to go through everything together. Once all the necessary details are received, all documents will be prepared and sent by e-mail along with the instructions.
Non-binding order
Fill in all the required details and a response will be provided as soon as possible.
If you are a VAT payer and in 2026 you buy or operate a company car, inform your accountant about the way it will be used right away.
The correct deduction does not start in the VAT form, but in the actual vehicle setup and records.
Need advice?
Call +421 948 600 200 | happy to help and sort everything out
The information published on this website or provided via e-mail and telephone does not constitute legal or tax advice. This website does not provide legal advice or legal services and therefore cannot be regarded as such. All information stated on this website is drawn from publicly available information or sources, does not provide legal advice, does not represent a legal analysis or legal opinion of the contributor, and is of a general nature only. Such services and information do not constitute the provision of legal services under special regulations (for example, under Act No. 586/2003 Coll. on Advocacy as amended) nor tax advisory services (for example, under Act No. 78/1992 Coll. on Tax Advisors and the Slovak Chamber of Tax Advisors).
The preparation of all documents in the form of a notarial deed or a document authorised by an attorney is ensured in accordance with Act No. 29/2026 Coll. on the Commercial Register. Representation before the Commercial Register is provided by a cooperating notary or an attorney registered with the Slovak Bar Association.