{"id":1816,"date":"2025-11-19T08:27:13","date_gmt":"2025-11-19T07:27:13","guid":{"rendered":"https:\/\/lunycar.sk\/the-benefits-of-short-term-car-rental-amid-slovakias-2026-vat-deduction-changes\/"},"modified":"2026-01-26T13:59:22","modified_gmt":"2026-01-26T12:59:22","slug":"the-benefits-of-short-term-car-rental-amid-slovakias-2026-vat-deduction-changes","status":"publish","type":"post","link":"https:\/\/lunycar.sk\/en\/the-benefits-of-short-term-car-rental-amid-slovakias-2026-vat-deduction-changes\/","title":{"rendered":"The Benefits of Short-Term Car Rental Amid Slovakia\u2019s 2026 VAT Deduction Changes"},"content":{"rendered":"

The Benefits of Short-Term Car Rental Amid Slovakia\u2019s 2026 VAT Deduction Changes<\/h2>\n

Introduction<\/h3>\n

Beginning January 1, 2026<\/strong>, Slovakia will introduce new VAT (Value Added Tax) rules that significantly affect companies using passenger cars (category M1) and certain motorcycles (L1e, L3e). Under the updated legislation, VAT deductions on the purchase, lease, and running costs of such vehicles will be limited to 50%<\/strong> for those used both for business and private purposes. KPMG Slovakia<\/span>+3<\/span><\/span>Draveck\u00fd & Partner<\/span>+3<\/span><\/span>LeitnerLeitner Slovakia<\/span>+3<\/span><\/span><\/span><\/a><\/span><\/span>
However, an important carve-out exists: short-term rentals (up to 30 days)<\/strong> are exempt from this restriction. Grant Thornton Slovensko<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span>
This change opens up interesting opportunities for businesses \u2014 particularly in leveraging short-term car rental<\/strong> as a strategy. Here\u2019s a detailed breakdown of the benefits.<\/p>\n

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What\u2019s Changing with the VAT Deduction<\/h3>\n
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  1. \n

    Flat-rate 50% VAT Deduction:<\/strong> For mixed-use company vehicles (business + private), companies will only be able to deduct 50% of input VAT<\/strong> on vehicle acquisition and related operational costs (fuel, maintenance, repairs) from January 1, 2026 until June 30, 2028. KPMG Slovakia<\/span>+2<\/span><\/span>LeitnerLeitner Slovakia<\/span>+2<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n

  2. \n

    Exceptions to the Rule:<\/strong> Full (100%) VAT deduction remains possible if the vehicle is used exclusively for business<\/strong>, or if the vehicle falls under certain special categories: short-term rental<\/strong>, taxis, driving schools, demonstrative\/test vehicles, or replacement vehicles during repairs. Draveck\u00fd & Partner<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n

  3. \n

    Simplified Record-Keeping:<\/strong> The move to a flat-rate deduction simplifies tax procedures \u2014 companies will no longer need to maintain exhaustive mileage logs for mixed-use vehicles. LeitnerLeitner Slovakia<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n

  4. \n

    Notification and Records:<\/strong> To claim the full 100% deduction for exclusively business-use vehicles, a taxpayer must notify<\/strong> the tax authority and maintain detailed electronic trip logs<\/strong> (VIN, odometer, trip start and end, purpose, etc.). Grant Thornton Slovensko<\/span>+2<\/span><\/span>LeitnerLeitner Slovakia<\/span>+2<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n

  5. \n

    Non-deductible VAT Excluded from Expenses:<\/strong> VAT that is not deductible under the new rule cannot be treated as a tax expense<\/strong> for income tax purposes. Grant Thornton Slovensko<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n<\/ol>\n

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    Advantages of Short-Term Car Rental After the 2026 VAT Change<\/h3>\n

    Given these new rules, short-term car rental becomes more attractive for companies. Here\u2019s why:<\/p>\n

    1. Full VAT Deduction on Short-Term Rentals<\/strong><\/h4>\n