Firms that deducted all VAT on vehicles acquired after January 2026 must prove exclusive business use.
The Financial Administration has launched a nationwide summer inspection campaign targeting businesses that claim full VAT deductions on passenger vehicles acquired after January 2026.
The checks will focus on whether companies that deducted 100 percent of VAT can prove that their vehicles are used exclusively for business purposes and that they have fulfilled all related reporting and record-keeping obligations.
Under the new rules, a full VAT deduction is available only for vehicles that are used solely for business. Where a vehicle is also used for other purposes, including private journeys, businesses are generally limited to a 50 percent deduction.
Inspectors will review whether VAT was deducted correctly when vehicles were acquired, whether companies can demonstrate exclusive business use and whether they maintain the required records showing how vehicles are used.
