EU Extends Estonia’s VAT Deduction Derogation for Passenger Cars

• The European Council extended Estonia’s authorization to derogate from Directive 2006/112/EC on the common system of VAT.
• The derogation allows Estonia to limit the VAT deduction to 50 percent of expenses related to passenger cars used for non-business purposes.
• The authorization is extended to December 31, 2027.
• The decision applies from January 1, 2025.
• Estonia must submit any further extension requests to the EC by March 31, 2027.
• The decision took effect on the date of notification.

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.