- Estonia requested to extend a special measure that restricts input VAT deduction rights on passenger cars not used for business purposes.
- The derogation allows Estonia to limit VAT deduction to 50 percent on the purchase, lease, import, or intra-Community acquisition of such cars, and related costs.
- The proposed decision extends Estonia’s authorization for the derogation to December 31, 2027.
- Estonia must submit any further extension request to the EC by March 31, 2027.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
