Firemné autá od roku 2026 – obľúbený benefit alebo ďalší problém?

From 1 January 2026, significant changes will come into effect concerning VAT on the use of passenger motor vehicles¹ (“motor vehicles”) for both business and private purposes. These changes will affect not only the accounting of costs but also the provision of motor vehicles to employees. It is therefore important to consider the overall tax regime comprehensively. In addition to the impact on VAT, it is necessary to consider tax deductibility from the perspectives of corporate income tax (CIT), the impact on employee taxation, and consequences for the employer.

What to focus on? The finance department, together with HR, should consider the following questions:

• How are the company cars actually utilized? Do employees really use the vehicles for business trips or mostly for private purposes?Can the ratio of business to private trips be substantiated?
• Are the car logbook records accurate? Would the car logbooks be considered sufficient during the tax audit?
• Is the taxation of the company car benefit appropriate, considering the purpose of vehicle use? What is the employment benefit — the company car itself or also the associated costs?

This article provides an overview of the news, practical recommendations, and warnings about often underestimated tax risks that can have profound consequences in practice.

This article provides an overview of the news, practical recommendations, and warnings about often underestimated tax risks that can have serious consequences in practice.

Key VAT changes from 2026

Current status (until 31 December 2025)

• VAT deduction applies based on the proportion of vehicle use for business (100% VAT deduction for exclusive business use).
• For mixed use of motor vehicles for both business and private purposes — there is a proportional VAT deduction based on actual business use (this applies to purchase of the vehicle, repairs, maintenance, and leasing).
• Fuel: a flat-rate VAT deduction of 80% can be applied, like the treatment of tax-deductible fuel costs for CIT purposes.

New rules (from 1 January 2026 to 30 June 2028)

• A 100% VAT deduction from all related costs remains in effect for exclusive business use of vehicles.
• For mixed use of vehicles for both business and private purposes — there is a 50% flat-rate VAT deduction (this applies to purchase of the vehicle, repairs, maintenance, leasing, and fuel).
• New obligations come into effect, to notify tax authorities of exclusive business vehicle use and to maintain electronic records of vehicle use.

Further details can be found in our alert on the (Approval of New VAT Deduction Rules for Passenger Vehicles and Motorcycles in Slovakia).

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¹ Vehicles of category M1 and motorcycles of categories L1e and L3e.

Consequences for CIT — watch out for tax expenses

Changes in the VAT rules effective from January 2026 also have direct consequences for CIT. If a company applies the flat-rate 50% VAT deduction for vehicles used for both business and private purposes, the non-deductible portion of VAT will become a non-taxable expense.

Recommendation:

You can ensure clear accounting by keeping this VAT on separate analytical accounts — this will make the preparation of the CIT return easier.

Cars as employee benefits/motor vehicles for private use

In practice, companies often provide vehicles for private use of employees – for example, for commuting to work and private trips. Although there are no legislative changes in this area, it is important to view the overall tax regime comprehensively, including its impact on both employee and employer.

The provision of a car for both business and private purposes constitutes non-monetary income for employees, which is generally subject to taxation and social security contributions. For the business and private use of vehicles, the employee’s taxable income is calculated as 1% or 0.5%[1] of the vehicle’s acquisition price per month(with adjustments made to the valuation in subsequent years of vehicle use).

Legislation does not specify a required proportion of business to private vehicle use by employees or a minimum number of business trips. However, in general, the legislation clearly requires the business use.

When the taxation of this benefit is set up correctly, the costs associated with the company car become tax-deductible for the company. An exception applies to fuel costs, where only the portion corresponding to the car’s business use can be included in tax expenses, capped at a maximum of 80% of the fuel costs related to business use (if full business use cannot be substantiated by the underlying documentation).

What to focus on? If employees in your company do not utilize company cars for business trips, or do so only minimally, it is advisable to explore alternative methods for valuing the associated employment benefit.

Incorrect arrangement can harm both the employee and the company, ranging from a reduction in the employee’s net salary to reputational damage or even criminal liability for statutory representatives.

Parking as a benefit: advantage and risk

Employers are increasingly encouraging employees to attend their work location physically, and therefore commute. Providing a parking place as a benefit is a practical solution and an increasingly popular perk — it saves employees time and costs. From a tax perspective, it represents a non-monetary benefit, which is subject to taxation in most cases.

What to Watch Out For?

If employees in your company do not use vehicles for business trips, or only minimally, we recommend to consider alternative ways of valuing the benefit.

Incorrect set up can harm both the employee and the company, from reducing the employee’s net salary to reputational damage or even criminal liability for statutory representatives.

Parking as a Benefit – Advantage and Risk

Employers are increasingly motivating employees to physically commute to work. Providing a parking place as a benefit is a practical and increasingly popular solution – it saves employees‘ time and costs. From a tax perspective, it represents a non-monetary benefit, which in most cases is taxable.

If the employee benefit is taxed correctly, parking costs are tax-deductible for the employer. Many companies rely on exemption up to 500 euros per year, but without keeping of proper records, there is a risk of additional taxation and penalties.

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² If it is a motor vehicle classified in tax depreciation group 0.

If taxation of the employee benefit is correct, parking costs are tax-deductible for the employer. Many companies rely on the exemption of up to EUR 500 per year, but without thorough records, there is a risk of additional taxation and penalties.

What to focus on? The absence of records does not imply that the benefit does not exist. Tax authorities may not accept the argument that parking spaces are not assigned to specific employees.

An incorrect arrangement can negatively impact both the employee and the company, leading to a reduction in the employee’s net salary and potential reputational damage.

Recommendation

We recommend establishing a transparent system for providing parking places — with clear rules, records, and correct taxation. This way, the company minimizes tax risks while providing employees with a valuable benefit.

Time to review internal rules

Companies should use the change in VAT deduction rules for motor vehicles as an opportunity to:

• Reassess the policy for providing company cars to employees.
• Review current records related to use of motor vehicles and fuel consumption.
• Ensure accurate and demonstrable evidence of company car use by employees.
• Verify the cost’s accounting setup for VAT and for income tax purposes.
• Ensure that the valuation and taxation of employee benefits comply with legal requirements.

A properly applied tax regime can save the company money and problems in the event of a tax audit.

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If you have further questions or need a consultation, do not hesitate to contact the authors of this article or your contact person at EY Slovakia.