News in the field of taxation and accounting 12/225

Čo v článku nájdete:

• 1. Methodological guidance on limiting the deduction of VAT on passenger cars
• Moment of acquisition of a vehicle, definition of fixed assets for VAT purposes and derogations from the transitional provision
• Combination of OMV use for purposes other than business and at the same time for exempted services
• Deduction of VAT on OMV used under the lease contract
• Deduction of VAT on related goods and services
• Change in the scope of OMV use
• 2. Guidance on the procedure for including input VAT in the corporate income tax base following the flat-rate deduction of VAT (50%) for OMV from 1.1.2026
• 3. Obligations under the New Sales Registration Act

1. Methodological guidance on limiting the deduction of VAT on passenger cars

Financial Directorate of SR published Methodological Guidance 3/VAT/2025/MU to limit the deduction of tax on passenger cars pursuant to § 85n of Act No 222/2004 Coll. on value added tax (hereinafter referred to as “VAT’). The most important information and illustrative examples are given below.

Situation until 31.12. 2025

Where a payer acquired capital goods that were a passenger car and, at acquisition, intended to be used for business purposes (hereinafter referred to as “business’) as well as for purposes other than business, the payer had the option, when deducting the tax, to proceed in two ways:

1. the deduction of input VAT in full, but the use of assets for purposes other than business had to be taxed pursuant to Paragraph 9 (2) of the VAT; or
2. deduct only to the extent that the assets are used for business purposes. If the payer has decided not to deduct a part of the tax which corresponds to the extent of the use of the tangible property for a purpose other than business, the use of that tangible property for a purpose other than business to that extent shall not be considered to be a supply of goods for consideration (§ 8 (3) ZVAT) or a supply of service for consideration (§ 9 (2) ZVAT). In the event that the payer subsequently changed the scope of use (i.e. to business vs. private purposes), he adjusted the deduction according to § 54d VAT.

Situation since 1.1.2026

Moment of acquisition of a vehicle, definition of fixed assets for VAT purposes and derogations from the transitional provision

In the period from 1.1.2026 to 30.6.2028 inclusive, the payer acquires fixed assets, such as a motor vehicle of category M1, category L1e or category L3e (hereinafter referred to as the “OMV’) shall be entitled to a tax deduction of 50%, provided that the OMV is not fully used for business purposes. The acquisition of OMV shall be understood to mean the acquisition of the right to dispose of OMV as owner. It is the acquisition of a disposable right to the OMV, whether through purchase or through a financial lease, which is deemed to be a supply of goods (note: in particular financial leasing contracts concluded after 31.12. 2024). This may include domestic purchases, purchases from another EU Member State or domestic imports of OMV from third countries. For the application of the transitional provision is the moment of acquisition of the motor vehicle in a given transitional period, not the moment when the tax becomes chargeable, the right to deduct or the actual moment of deduction.

Examples of OMV acquisition:

If the payer bought the OMV by the end of 2025 in another EU Member State (by the end of 2025 he will become its owner), but he will not be shipped to domestic until 2026 when the registration and allocation of the EVN in the Slovak Republic takes place, provision § 85n ZVAT not applicable, since the application of the transitional provision does not make it essential to create a tax liability (in this case under Paragraph 20 of the VAT Act) but to transfer the available right to the customer, which occurred before 1 January 2026.

In a situation where the payer paid an advance for a new motor vehicle in October 2025 in the amount of 100% of the purchase price and acquired the vehicle only in January 2026, the VAT liability arose before 1 January 2026 under Section 19(4) of the VAT Act in an amount corresponding to the entire purchase price paid in advance. However, if the right to dispose of the vehicle is acquired between 1 January 2026 and 30 June 2028, the payer may claim a 100% VAT deduction for the October 2025 tax period, but after the vehicle is first used must adjust the deduction relating to the advance payment under Section 53(1)(c) of the VAT Act, in accordance with the transitional provision of Section 85n of the VAT Act.

The transitional provision on VAT deduction applies only to the acquisition of OMVs which meet the definition of fixed assets under § 52a (1) (a). (b) VAT. The payer’s fixed assets within the meaning of this definition are assets which the payer uses for the purposes of his business, other than assets acquired or created by his own business for resale, and whose useful life is more than one year. This is also the OMV with a purchase price of less than EUR 1 700. An exception to the application of the transitional provision is, for example, the car dealers. Also, exemptions from the application of that provision apply to OMV procured for the purpose of transporting persons and their luggage (including taxi service), the purchase of vehicles for hire, cars and demonstration/testing/replacement vehicles (e.g. motor vehicle dealers).

Combination of OMV use for purposes other than business and at the same time for exempted services

If the payer uses OMV in the course of business for transactions where he can deduct tax, and also for transactions where he cannot deduct tax (e.g. exempt transactions under Section 28-42 of the VAT Act), he is obliged to do so in calculating the proportional amount of tax that he can deduct under Section 50 of the VAT Act. This means that the payer has yet to recalculate the VAT by a factor.

Example of conversion of OMV to non-recoverable activities:

The payer bought in March 2026 OMV, whose purchase price without tax is EUR 20 000 and the amount of tax 4 600 Euro. OMV will also use the payer for private purposes. In business, the payer will also use OMV for exempt activities without deduction. The payer applies a provisional coefficient of 0,7 and therefore the right to deduct according to Paragraph 85n (1) to the extent of 50% has yet to be recalculated by a factor of 0,7. The payer can therefore apply a deduction of the OMV tax of EUR 1 610 (4 600 x 0,5 x 0,7 = 1,610). The following year, the payer continues to use OMV for supplies exempt from tax without deduction and for supplies with a tax deduction option. However, the annual coefficient in 2027 was calculated at 0,4 on the basis of which there was a change in the purpose of the use of fixed assets (OMV) in 2027 and the payer is obliged to adjust the deduction tax in the tax return for the December 2027 tax period and to grant an additional non-deductible tax of EUR 138 on the basis of the following calculation:

Deduction of VAT on OMV used under the lease contract

The new rules on tax deduction for OMV not used exclusively for business purposes shall also apply to rental contracts whose duration of the continuous lease of OMV is more than 30 calendar days. For example, it is an operating lease contract, or a financial lease contract (most often, most often, the oldē financial lease contracts concluded before 2025), the object of which is to use the OMV for a period longer than 30 calendar days, which is generally considered as a service supply.

Example of deduction of passenger car rental tax:

The payer shall also use the OMV on the basis of a lease contract with an agreed purchase right for private consumption. According to § 8 §. 1 letter (c) The VAT in the version in force until 31 December 2024, following Article 85kn (4) of the VAT is not a supply of goods but a repeated supply of service. In the case of the use of OMV on the basis of the lease contract also in the period from 1.1.2026, the payer may deduct the tax applicable to the service only to 50%. If the tax liability under § 19 ZVAT was incurred before 1. 1. 2026, the payer may apply the deduction under the old and old rules. If the tax liability arises after 1. 1. 2026, the payer may deduct the tax in this case under the transitional provision to the extent of only 50%.

Deduction of VAT on related goods and services

A flat-rate deduction of 50% of input VAT also applies to related goods and services which the payer procures in the period from 1.1.2026 to 30.6.2028 (e.g. car service services, parking, car washing, fuel, liquids and others) in connection with the OMV, which is also used for purposes other than business or OMV which are not covered by the exception (see e.g. point A above). It is important to note that this limit applies also to those OMVs that were procured before 1.1.2026. Once again, in the case of the use of OMV for a purpose other than business as well as exempt transactions, the input VAT on related goods and services must be reduced by a factor.

Specific example for the VAT deduction on the purchase of PHP, which is deducted by the employer to the employee:

The OMV owned by the payer is also used for the private consumption of the employee. All fuel costs consumed for private purposes by the employee are deducted from the wage. As the OMV is also used for the private consumption of the employee, it is possible to apply a deduction of only 50% of the tax on the purchase of fuel. Where the employer for the fuel used for the employee’s private consumption requests consideration from the employee (receipt the relevant amount to the employee on wages), he shall act as a taxable person only to the extent of the fuel for which the tax has been deducted. To the extent that the tax has not been deducted, it acts as a non-taxable person, i.e. the supply for consideration is not subject to tax. For example, if 50 litres per month represents the total fuel consumption and the employee runs 28 litres privately (with an employer knocking the employee off the salary for 28 litres), then 3 litres are subject to exit VAT.

Change in the scope of OMV use

In the event that the payer exercises full entitlement to deduct VAT when acquiring the OMV and consequently changes the scope of use of the OMV for private purposes, he will be obliged to tax private consumption and to pay VAT on exit in accordance with the provision of Paragraph 9 (2) of the VAT. This means that the payer will not reparate the originally deducted tax on the acquisition of OMV, but any use of OMV for a purpose other than the business of exit taxation. If the opposite occurs (e.g. the payer sells the OMV for which he has applied only 50% of the VAT deduction), the payer shall apply the provision of §54d of the VAT ♦ i.e. the right to adjust the deducted tax.

Recording obligation

The payer who procures the OMV exclusively for business or uses the OMV (e.g. in the form of an operating lease) from 1.1.2026 exclusively for business and applies the full deduction of input VAT is obliged to keep detailed records of this OMV in electronic format (i.e. record keeping on an electronically processable basis, e.g. the Excel Table) and to the extent defined in § 85n (6) of the VAT. The recording obligation also applies to the acquisition of goods and services related to the use of OMV, where the VAT payer applies a 100% deduction of input VAT. Record keeping will represent Substantial condition full deduction of VAT. Such records shall be kept by the payer for a period of 10 years. The exemption from the recording obligation will apply to OMV acquired or used exclusively for business, such as rental, transport of persons and luggage (including taxi), cars, demonstration/test/replacement vehicles (e.g. motor vehicle dealers).

Notification obligation

A payer who applies a 100% deduction of input VAT on the acquisition of OMV is obliged to notify the use of OMV exclusively for business (without exception) within the time limit for filing the tax return for the tax period in which he applies the deduction. The notification shall be made by the payer to the tax office using the form “Notice on the use of a passenger car for business’ published on the website of the Financial Directorate. Payer No reporting obligation, if OMV acquired before 1 January 2026. This obligation will also apply to OMVs used for business under operating leases or financial leases (which are considered to be a service) equally without exception. In this case, the notification obligation shall be fulfilled for the tax period in which the payer applies VAT deduction for the first time. The obligation to notify will also arise when the OMV has changed its use from the exhaustively listed exceptions (referred to in point E above) to other but still exclusive business purposes or vice versa.

2. Guidance on the procedure for including input VAT in the corporate income tax base following the flat-rate deduction of VAT (50%) for OMV from 1.1.2026

Following the provisions of Act No. 595/2003 Coll. on Income Tax (hereinafter referred to as the “VAT’) adopted in connection with the restriction of the deduction of input VAT for passenger cars, the Financial Directorate of the Slovak Republic issued guidance on the procedure for including VAT in the corporate income tax base.

• Procurement procedure for a motor vehicle

Entry VAT is not considered to be a tax expense under § 52zzzk ZDP if the VAT payer is not entitled to deduct it, whereas VAT relating to the acquisition of OMV is not included in the tax entry price. In the light of the above, if the taxpayer procures between 1.1.2026 and 30.6.2028 OMV for a purpose other than business, it will be entitled to a flat-rate deduction of 50% of VAT; the non-deductible part of the VAT will not enter the tax entry price. This means that the taxpayer will have a different entry price for the purposes of applying accounting and tax depreciation. The difference between higher and lower tax depreciation shall be taken into account in the corporate income tax return on line 150 as an add-on to the tax base. The difference between accounting and tax depreciation needs to be assessed separately for each OMV procured between 1.1.2026 and 30.6.2028, during the depreciation period. In the case of the use of a vehicle for a purpose other than business, where the taxpayer claims to deduct VAT by a factor under Paragraph 50 of the VAT Act, the taxpayer may choose one of the following procedures, as the VAT does not determine the precise sequence of steps to reduce the deductible VAT on such a payer:

1. recalculate the right to deduct VAT by coefficient and subsequently quantified entitlement to reduce flat-rate by a value of 50% of non-deductible VAT; or
2. flat-rate VAT reduction by 50% and then apply the VAT coefficient.

For a taxpayer who is a VAT payer and is entitled to deduct it by a coefficient under VAT, is part of the entry price a part of the VAT not deducted under this title (Art. 25 (5) (a)) (c) ZDP].

• Procedure for spent PHP

Where a VAT payer is not entitled to deduct VAT on consumed PHP for OMV used for purposes other than business purposes, or is not fully entitled to deduct VAT on use only for business purposes because of failure to keep records showing the extent of use of the OMV, in such a case the VAT to which it is not entitled pursuant to § 85n ZVAT is not treated as a tax expense in accordance with § 52zzzk ZDP. When charging VAT in respect of acquired PHP, it is governed by Paragraph 52 (7) of the accounting procedures, i.e. VAT, which the payer is not entitled to deduct in accordance with Paragraph 85n of the VAT, is part of the purchase price of fuel (i.e. the accrued part of the VAT on the purchase of PHP will be included in the cost, in a separate non-tax analytical account). This amount of VAT charged on the costs will be a non-recognizable tax expense which the taxpayer shall include in the corporate income tax return as an add-on to the tax base on line A16 and thereafter on line 130.

• Procedure for goods and services related to a motor vehicle

When charging VAT related to the received service in connection with the OMV, it is done according to § 52 (5) of the accounting procedures, i.e. the non-deducted VAT will be included in the costs of the received service. VAT accounting for acquired goods (e.g. spare parts) is carried out according to Paragraph 52 (7) of the accounting procedures, i.e. VAT to which the taxpayer is not entitled to deduct will be included in the purchase price. Thus, if a taxpayer has acquired goods or received a service in respect of the OMV used for the purposes of his business as well as for any other purpose, non-deductible 50% VAT, it is not considered to be a tax expense in accordance with Paragraph 52zzzzk of the ZDP and that taxpayer shall indicate in the corporate income tax return as an add-on to the tax base on line A16 and thereafter on line 130.

• Procedure for changing the scope of OMV use

In accordance with § 52zzzk ZDP, if the scope of use of OMV for business purposes as well as for purposes other than business purposes changes, VAT is not included in the tax base, i.e. it is an exception to the application of Paragraph 17 (18) (a). (b) ZDP. This means that, when changing the scope of use of OMV, for which VAT was deducted only 50%, VAT (within the meaning of § 54d of the VAT) is not included in the income tax base. The taxpayer shall adjust (reduce) the profit or loss of the amount of additional VAT deducted by way of a deductible item on line 290 of the corporate income tax return. See in parallel the point concerning the change in the scope of use of OMV in VAT in Chapter 1. When accounting for VAT when changing the scope of the use of a motor vehicle, it is carried out in accordance with § 52 (8) of the accounting procedures, i.e. it is charged by nature to or from an account of 343 ♦ Value added tax with a credit card of 548 “Other costs of economic activity or in favour of an account of 648 ” Other income from economic activity.

3. Obligations under the New Sales Registration Act

In previous news we informed you about the approved version of the Act No. 384/2025 Coll. on sales registration. The financial report published practical information for sellers on its website.

As most of the exceptions to date are abolished and the range of sellers with the obligation to use the treasury is significantly extended, the basic obligations of the seller under the new Sales Registration Act are listed below:

1. Establish access to the Financial Administration portal (if the Seller has not yet) and then choose one of the available types of treasury:

• Online Treasury (ORP)
• Online Software Treasury (SORP) software solution for sales registration,
• virtual cash register (VRP) – free online financial management service.

2. To submit an application for allocation of the treasury code via the financial administration portal, the procedure being as follows:

• the seller chooses and confirms from the personal internet zone -Catalogue of forms– and selects the agenda for which the document (form) wants to be completed and submitted,
• the seller selects the type of treasury (ORP/SORP/VRP) and adds the address of the point of sale (the place where the revenue will be received) to the form and, if it is a portable cashier, selects the type of cashier,
• After sending the code allocation request, the financial report shall be made available to the seller of the treasury code together with the authentication and identification data in its e-case zone, in the case of VRP the seller will receive the login data by post.

3. Start registering every revenue received and hand over to the buyer a receipt with mandatory particulars in accordance with the new Sales Registration Act.
4. The seller must inform the buyers by notifying them of the obligation to use the cashier. On this link you will find Model for the notification. . The point of sale shall be:

• a visible and legible statement of the obligation to use the treasury,
• the use of a template from the financial report website is recommended.

5. In order to allow non-cash payment, i.e. if the seller receives sales at the point of sale, from 1 March 2026 he will also be obliged to allow non-cash payment (e.g. by card, QR code or other non-cash means) for sales above 1 euro.