The Slovak Financial Administration has launched inspections of vehicles registered to companies and entrepreneurs to verify whether they are actually being used exclusively for business purposes, as declared in tax records.
Businesses are advised to review their documentation and ensure that their accounting records are accurate. If tax inspectors identify violations, companies may be required to repay incorrectly claimed tax deductions and could also face penalties.
Who will be affected by the inspections?
The checks will primarily target companies that claimed a full VAT deduction when purchasing passenger vehicles. Inspectors will examine not only formal documentation, such as invoices and contracts, but also how the vehicles are actually used.
Since the beginning of 2026, Slovakia has introduced stricter rules for claiming a full VAT deduction on company cars. If a vehicle is used for both business and private purposes, entrepreneurs may claim only 50% of the VAT.
The restriction applies not only to the purchase of the vehicle but also to related expenses, including fuel, maintenance, repairs, and other operating costs.
A 100% VAT deduction is now possible only if the company can prove that the vehicle is used exclusively for business activities. A simple declaration from the company is not sufficient — detailed records of every journey must be maintained.
The records must include information about the driver, route, and purpose of the trip. These details will become one of the key pieces of evidence during tax inspections.
What documents may inspectors request?
During an inspection, entrepreneurs will need to prove both the purchase of the vehicle and its actual use for business purposes.
Tax authorities may request:
- travel logs;
- invoices and documents related to the vehicle purchase;
- payment confirmations;
- records of maintenance and operating expenses;
- other documents proving the business purpose of trips.
The Financial Administration emphasizes that the key factor will not be the mere existence of documents, but whether they correspond to the actual use of the vehicle.
What will tax inspectors check?
The inspections will not involve stopping vehicles on the road. Instead, inspectors will compare the information declared by companies with the actual use of vehicles.
Authorities will rely on two main methods: analysis of electronic data and monitoring of vehicle usage.
For example, tax inspectors may record company vehicles outside working hours near shopping centers, sports facilities, schools, or residential areas. The mere presence of a vehicle in such locations does not automatically constitute a violation, but the company must be able to explain the business reason for the trip.
Inspectors will also compare electronic travel records with other sources of information, including fuel purchase data, technical inspection (STK) records, and information from service centers.
If inconsistencies are found — for example, regular private use of a company vehicle that is not reflected in records, or fuel expenses that do not correspond to reported routes — the tax authorities may reassess the company’s right to claim VAT deductions.
Possible penalties
If violations are confirmed, businesses may lose the right to the full VAT deduction, be required to repay unpaid taxes, and face financial penalties.
The fine can reach 100% of the amount of the incorrectly claimed VAT deduction.
To avoid sanctions, the Financial Administration recommends that companies review their vehicle records in advance and correct any inaccuracies before an official inspection begins.
