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SK Vehicles and Fuel — VAT and Income-Tax Flat Rates

The 50 % VAT deduction on passenger vehicles used also privately (§ 85n) as purchase taxes, and the 80 % fuel flat rate for income tax as a split on the vendor bill — two independent Slovak regimes.

What it is for

A passenger car used for business and private purposes is restricted twice, and since 1 January 2026 the two restrictions are independent of each other:

Each half can be used without the other: the VAT taxes on a repair bill, the fuel split on a fuel bill of a company that is not a VAT payer, both on the fuel bill of a VAT payer.

Legal background

VAT. § 85n of the VAT Act applies from 1 January 2026 to 30 June 2028 to motor vehicles of categories M1, L1e and L3e (osobné motorové vozidlo):

• a payer that acquires such a vehicle as a long-term asset deducts the VAT on it at 50 % (ods. 1); the same applies to the VAT on a lease other than a short-term one (ods. 2) and to goods and services received in connection with a vehicle used for business as well as other purposes — fuel, repairs, vignettes and the like (ods. 3);
• the limit does not apply to vehicles used exclusively for short- or long-term rental, carriage of passengers including taxi, driving schools, or as demonstration or replacement vehicles (ods. 4), nor to a vehicle used exclusively for business when the payer keeps detailed electronic records of every trip (ods. 5 and ods. 6);
• the use under ods. 4 or 5 must be notified to the tax office on the Finančné riaditeľstvo's form by the deadline of the return in which the deduction is first claimed (ods. 9).

Until 31 December 2025 the last part of § 49 ods. 5 let a payer who claimed the fuel flat rate for income tax and could not prove the business share deduct VAT on fuel up to that flat rate. That clause is gone from 1 January 2026; the VAT deduction no longer follows the income-tax flat rate.

Income tax. Fuel consumed is a tax expense, among other methods, as a flat rate up to 80 % of the total proven fuel purchase for the period, provided the number of kilometres driven, per the odometer at the start and end of the period, is reasonable — for each vehicle separately (§ 19 ods. 2 písm. l) bod 3). It is one of four methods the provision allows; choosing it is the taxpayer's decision.

The VAT that is not deducted. As a rule the Income Tax Act counts VAT the payer has no right to deduct as a tax expense (§ 19 ods. 3 písm. k) bod 2) and, on tangible assets, as part of the entry price (§ 25 ods. 5 písm. b)). For the VAT that § 85n leaves undeducted, a transitional provision in force from 1 January 2026 says the opposite: § 52zzzk — "Za daňový výdavok podľa § 2 písm. i) a § 19 sa nepovažuje daň z pridanej hodnoty podľa osobitného predpisu, ak na jej odpočítanie nemá platiteľ dane z pridanej hodnoty nárok, pričom ak ide o daň z pridanej hodnoty vzťahujúcu sa na hmotný majetok …, táto nie je súčasťou vstupnej ceny", the "osobitný predpis" being § 85n of the VAT Act. So the non-deducted half is not a tax expense, and on a purchased vehicle it is not part of its entry price for tax depreciation. This module books it on the same account as the non-deductible share of fuel (see VAT), from which it is added back in the income-tax return.

Setting it up

Accounting → Configuration → Settings, block Vehicles and fuel (Vozidlá a PHL), setting Flat rates (Paušály), shown only for companies with the Slovak chart. The § 85n share is not among them: the law fixes it at 50 %, and it is built into the two vehicle taxes.

The two taxes, 23 % vozidlo (50 % odpočet) and 19 % vozidlo (50 % odpočet), appear in Accounting → Configuration → Taxes. They are created when the module is installed, for every company that already has the Slovak chart, and when the Slovak chart is loaded into a company later. A tax the company already has is left as it is. If a company's chart lacks an account or tax group the taxes need (343120, 343110, 548000, the 23 % or 19 % VAT group), the installation skips that company and logs a warning; create its taxes by hand, modelled on the standard purchase taxes, with the tax distribution described below.

VAT: the vehicle taxes

On a bill for something § 85n covers — the purchase or long-term rental of the vehicle, fuel, repairs, a vignette — choose 23 % vozidlo (50 % odpočet) (or the 19 % one) on the line instead of the ordinary purchase tax. The supplier's full VAT is still charged and paid; the tax splits it:

Example: fuel for 100.00 plus 23 % VAT. The bill total is 123.00; 11.50 of VAT is deducted on 343120, 11.50 goes to 548000.

Splitting the VAT in the tax itself is what keeps the return right: only the deductible half carries the tax grid. Moving half of a fully deductible VAT to an expense with a journal entry afterwards would still report the full amount as deducted.

Use the ordinary taxes for vehicles § 85n does not cover — other categories, the exempt uses of ods. 4, or a vehicle used exclusively for business with the records of ods. 6.

Fuel split for income tax

On a vendor bill or refund in draft, click Split fuel (Rozúčtovanie PHL):

1. Tax-expense share (%): proposed from the settings (80).
2. Non-deductible account: proposed from the settings (548000).
3. Fuel lines: pick the bill lines that are fuel.
4. Click Split.

Each selected line keeps the tax-expense share of its amount; a new line with the rest is added on the non-deductible account, with the same taxes. The bill total, the VAT and the payable do not change — only the expense is reclassified. The chatter records the split.

Example, continued: the 100.00 fuel line becomes 80.00 on the fuel expense account and 20.00 on 548000, both with the vehicle tax.

A line that has already been split cannot be split again. Splitting rewrites the line as quantity 1 at the remaining amount (any discount is already reflected and is cleared). The amount is split as entered: with a tax that includes the price, the gross price is split, so the bill total stays the same either way.

In the tax return

• The VAT return picks up only the deducted half, through the tax grid; no further step is needed.
• The amounts on the non-deductible account are not transferred to the corporate income tax return automatically. Enter them among the add-backs of the return yourself — see l10n_sk_dppo. The non-deducted § 85n VAT and the non-tax share of fuel both are add-backs (see Legal background), as long as nothing else is booked on that account.

Limitations

• Nothing is date-gated. The 50 % regime applies from 1 January 2026 to 30 June 2028; on bills outside that window choose the tax yourself.
• The module does not know your vehicles: categories M1/L1e/L3e, the exempt uses and exclusive business use are not modelled, there is no logbook or electronic trip record under § 85n ods. 6, and the notification under ods. 9 is not produced.
• The non-deducted VAT always goes to 548000 (the account in the tax), even if you change Non-deductible vehicle costs. On a vehicle purchase it lands in expenses, not in the cost of the asset — right for income tax (§ 52zzzk), but whether your accounting should capitalise it is for your accountant to decide.
• The new line of a split carries no product, and the original line loses its quantity (litres).
• Whether the 80 % flat rate may be used — the reasonable mileage per the odometer, vehicle by vehicle — is the accountant's call, not the module's.