- The European Commission has proposed a Council Implementing Decision to allow Slovakia to limit the VAT deduction to 50% for certain motor vehicles and motorcycles not fully used for business purposes, simplifying VAT collection and preventing tax evasion.
- The special measure, requested by Slovakia, covers specific categories of vehicles and related expenses, excluding those used for resale, hire, lease, passenger transport, driving lessons, testing, or as replacements. It aims to reduce administrative burdens and improve compliance.
- The proposed derogation is set to be valid until June 30, 2028, with a review and potential extension requiring a report on its effectiveness and the applied percentage by September 30, 2027.
Source data.consolium.europa.eu
