What exactly changes from 2026
Until now, an entrepreneur could deduct the full 100% VAT on the purchase and operation of a company car, provided they could prove its use for business (for example with a logbook). From 1 January 2026, this rule is being tightened:
50% flat-rate VAT deduction on the acquisition of a motor vehicle that is also used for private purposes.
50% limit also on operating costs – fuel, service, maintenance, parking, motorway vignettes, operating and finance leasing.
The restriction applies to vehicles in categories M1 (passenger cars), L1e and L3e (motorcycles).
VAT relating to the private use of the vehicle is not a tax-deductible expense in the period from 1 January 2026 to 30 June 2028.
The aim of the amendment is to limit the abuse of deductions for vehicles that are in fact also used for private purposes.
Who is affected by the new regulation
The change will affect practically every company and sole trader that has or plans to acquire a passenger car classified as business property. It will be felt most by:
companies with a fleet of company cars used by employees also for private purposes,
s.r.o. managing directors using a company car for trips outside working hours,
sole traders using one vehicle for mixed purposes,
companies renewing their fleet in 2026 and later.
When you can still claim a 100% VAT deduction
The amendment does not abolish the possibility of a full deduction entirely. The 100% VAT deduction remains in place in the following cases:
taxi service,
driving schools,
short-term vehicle rental (car rental companies),
international forwarding and freight transport,
cases where the car is demonstrably used exclusively for business purposes (and the entrepreneur is able to defend this with documents in the event of a tax audit).
In practice, the burden of proof is on the entrepreneur – a logbook, GPS records and an internal vehicle-use policy will be more important than ever.
Practical example: how much the change will cost you
Imagine a company that in 2026 buys a new passenger car priced at €30,000 excluding VAT (VAT 23% = €6,900). The car is also used for private purposes.
The difference of €3,450 will only enter the costs through depreciation, not immediately through VAT. With annual operating costs of €8,000 excluding VAT, the impact is another approximately €920 of non-deductible VAT per year.
What you can still do now
Reconsider the timing of the purchase. If you were planning a new vehicle for the beginning of 2026, recalculate the acquisition scenario within the current tax year.
Set up an internal vehicle-use policy. Clear rules, a logbook and possibly GPS tracking are the basis if you want to defend 100% use for business.
Review your leasing contracts. For operating leases concluded in 2026 and later, the 50% limit will apply to instalments and service items as well.
Communicate the change to employees. If they have company cars, the consequences will also be reflected in the company's monthly overheads.
Consult a tax advisor. Every company has a different fleet structure and different optimisation options – there is no universal solution.
Do you need help with preparation?
The VAT changes from 2026 are not the only news that will affect your company – the consolidation package also brings new income tax rates, a minimum tax for large companies and changes in social contributions for sole traders. If you want to be sure that you have your processes, policies and accounting set up correctly, arrange a non-binding consultation with our tax advisors and auditors.
