Slovak Tax Authorities Begin Checking Vehicles Registered to Businesses

The Financial Administration has started mass inspections of vehicles that companies use in business activities. Entrepreneurs are advised to check their documentation in advance — if violations are found, they may be fined and required to return improperly obtained tax deductions.

Special attention is given to companies that claimed a full deduction of Value Added Tax (VAT) when purchasing a passenger car. Inspectors will not only check the necessary documents but also verify whether the vehicle is used exclusively for business purposes.

New VAT Deduction Rules

Since the beginning of 2026, stricter rules for VAT deductions on company cars have been in effect in Slovakia. If an entrepreneur uses a car not only for work but also for personal purposes, they are entitled to reclaim only 50% of the VAT. This rule applies not only to the purchase of the car but also to expenses on fuel, repairs, and maintenance.

A company can obtain a full VAT deduction only if it can prove that the vehicle is used exclusively for business activities. It is not enough to simply declare this to the tax office. The company is required to keep detailed records of trips: who drove the vehicle, where this person went, and for what purpose (more details on the new rules can be read here.

During the inspection, entrepreneurs will need to provide records of trips, as well as documents confirming the purchase and use of the vehicle in business. These may include invoices, sales contracts, payment confirmations, and other related documents.

The Financial Administration emphasises that these materials must confirm the actual use of the vehicle.

How Inspections Are Conducted

Inspectors will not stop vehicles while they are in motion. Their task is to verify whether the data provided by companies matches the actual use of the vehicles.

Inspectors will gather evidence in two ways: through digital audits and on-site monitoring on the streets. Outside working hours, tax officials plan to record the numbers of commercial vehicles in car parks at shopping centres, fitness clubs, schools, and residential areas. The mere presence of a vehicle in such places does not automatically indicate a violation, but the company will need to clearly explain and document the business purpose of the driver at that time.

The Financial Administration will also remotely compare electronic trip logs with fuel receipts, technical inspection (STK) databases, and service centres. Any discrepancies — such as the regular appearance of a vehicle at the director’s home without personal use being documented or the purchase of petrol on a weekend with an “empty” trip log — will lead to the cancellation of VAT deductions, additional tax assessments, and hefty fines.

The maximum penalty may include the denial of the full VAT deduction and a fine of up to 100% of the corresponding amount. In this regard, the Financial Administration recommends that companies correct any potential errors before the inspection begins. For a VAT payer, it is more advantageous to voluntarily submit a corrected tax return and pay the necessary amounts in advance. In such cases, fines and interest for late payment may be lower than after violations are identified during an official inspection, the department notes.