New VAT Deduction Procedure for Car Purchases: How the Rules Work in Practice

11.02.2026

11.02.2026

From January 2026, stricter rules for entrepreneurs to obtain a value-added tax (VAT) deduction on passenger cars came into force in Slovakia.

Full VAT Deduction — Only with Strict Record-Keeping

If an entrepreneur wants to maintain the right to a 100-percent VAT deduction when purchasing and operating a car, several conditions must be met. Firstly, the vehicle must be used exclusively for business activities. Secondly, all trips must be recorded in an electronic logbook — paper journals are no longer considered sufficient evidence.

An additional requirement has also come into effect — entrepreneurs who purchased a car for their business after 1 January 2026 are required to notify the tax authorities using a special form (which can be filled out here).

If the car was purchased in January 2026 and the entrepreneur is already claiming a VAT deduction for that month, the relevant notification must be submitted no later than 25 February. For VAT payers with quarterly reporting, the deadline is 27 April. Cars purchased earlier do not need to be declared.

What the Electronic Logbook Should Include

The law does not set a strict format for the electronic logbook, but tax authorities emphasise that records must be kept accurately, transparently, and without the possibility of unauthorised backdating. This means that even a regular Excel file is formally acceptable if it meets these requirements.

For companies with large fleets, GPS monitoring systems or specialised software become more practical options. Such solutions automatically record each trip via a satellite device in the vehicle and do not allow manual “editing” of routes. They typically allow data to be exported in standard formats — PDF, Excel, or XML. The downside is obvious: using such systems incurs a cost.

If a tax audit reveals that the electronic logbook is absent or maintained with violations, the tax authority will automatically reduce the right to a VAT deduction to 50%, regardless of how the vehicle is actually used.

What Data Must Be Included in the Records

The electronic logbook must contain a complete set of information to unequivocally confirm the business nature of the vehicle’s use. Specifically, it should include:

  • vehicle identification (number, make, and model);
  • exact date and time of the start and end of each trip;
  • route — departure point and destination;
  • odometer readings before and after each trip, as well as at the start and end of the reporting period;
  • purpose of the trip with a clear indication of its business nature;
  • driver’s name.

All expenses related to the vehicle’s operation are recorded separately: fuel, repairs and servicing, insurance, road tolls and vignettes, parking, tyres, fluids, and other associated expenses. For each, the type of goods or services, purchase date, and cost excluding VAT must be specified.

At the same time, the tax service emphasises: it is not necessary to specify client names or company names. It is only important that the record makes it clear why the trip was made and how it relates to business activities.

Simplified Options

For those who use the car for personal purposes as well — for example, commuting from home to work — a flat-rate VAT deduction of 50% applies from January 2026. In such cases, maintaining a detailed electronic logbook is not required.

However, even here, the entrepreneur must keep all invoices and documents related to the vehicle’s operation to confirm the total amount of expenses from which half the VAT is then calculated. The other half is automatically considered a non-deductible tax expense, regardless of how the vehicle was actually used. This means a noticeable increase in the actual costs of maintaining the vehicle.

In practice, the difference can be significant. For example, if annual car expenses amounted to 13,000 euros, with a full VAT deduction through an electronic logbook, the entrepreneur can save almost 3,000 euros. With a 50-percent flat rate — only about 1,500.

At the same time, another option remains — the application of 80-percent flat-rate income tax expenses. This option remains, but here too, the VAT deduction is limited to the same 50%. The same rule applies to company cars provided to employees for personal use: employers will be required to reduce the VAT deduction by half.