Slovak Tax Authorities Launch Nationwide Checks on Private Use of Business Vehicles

Slovakia's Financial Administration has launched a nationwide summer inspection campaign targeting businesses that claim full VAT deductions on company vehicles also used for private purposes. Under Slovak tax law, entrepreneurs who use a vehicle for both business and personal purposes are entitled to only a 50% VAT deduction. Those who claimed a full deduction must be able to demonstrate the vehicle was used exclusively for business, typically by maintaining a detailed logbook of all journeys. As part of the campaign, tax inspectors will conduct physical checks of vehicles in public spaces, not just auditing paper records. Business owners who purchased a vehicle this year, claimed full VAT relief, and cannot produce a properly maintained logbook may face penalties or be required to repay the difference. The checks are part of a broader seasonal enforcement drive conducted across all regions of Slovakia. The campaign reflects ongoing efforts by the Financial Administration — the state body responsible for tax collection and customs enforcement — to close loopholes that allow businesses to reduce their tax liability by misclassifying personal vehicle use as business expenditure. Entrepreneurs are being advised to review their records and ensure compliance before inspectors arrive.