Car policy 2026: what to adjust for ESG, VAT and fleet costs

Car policy is no longer just a "list of allowed models". In 2026, it will be a key document for both HR and CFOs, linking cost (TCO), compliance (VAT/accounting), ESG reporting and employee safety. In this article you will find practical guidance on exactly what to transcribe, what numbers to request from suppliers and how to set up the rules to be both sustainable and commercially defensible.
 

What is a car policy and why it's worth paying more attention to in 2026 than it is now

A car policy is a company's internal regulation that defines:

• Who is entitled to a company car (position, seniority, work needs),
• types of vehicles and limits (categories, price, equipment, bodywork),
• rules of use (business vs. private driving, foreign travel, fuel card),
• operating standards (servicing, tyres, insurance, claims),
• financial and tax rules (deductibles, benefits in kind, accounting),
• ESG and safety requirements (emission limits, training, telematics).

Why 2026? Three big trends will meet in practice:

1. Tightening ESG requirements and the push for measurable data,
2. changes to VAT deduction rules for passenger vehicles (SR),

continued pressure on budgets and the need for better cost and risk control (damage, downtime, availability).

Specific data you need to consider in car policy in 2026

1) Slovakia: change in VAT deduction from 1 January 2026

From 1 January 2026, the rules for VAT deduction for passenger cars in Slovakia will change. Key logic for car policy:

• 100% deduction is typically only defensible for vehicles used exclusively for business and where detailed records are kept.
• In other cases, a flat (limited) deduction will be relevant in practice for many businesses, which changes the "purchase vs. lease vs. rental" comparison.

Impact on car policy:

• Modify private use (and proof of private use) rules,
• add requirements for recording of journeys (who, how, what output),
• Recalculate internal monthly rental/TCO limits after new.

2) EU: CO₂ standards and pressure to decarbonise fleets

The EU has long been tightening CO₂ targets for new cars and vans. For company fleets, this means:

• Increasing the share of electrified vehicles,
• pressure to renew vehicles (lower emissions, safety, availability of service network),
• the need for a "policy" for charging (home charging, public charging, refunds).

3) ESG reporting and mobility data

The EU's direction on sustainability is leading large companies (and over time companies in supply chains) to increasingly demand:

• Measurement of mobility emissions (min. Scope 1 and 2, often also Scope 3 - e.g. leased vehicles and commuting),
• demonstrable internal rules (car policy) and compliance with them,
• auditable supporting documents (invoices, mileage, fuel type, CO₂ according to WLTP).

Practical detail: in the EU the average age of passenger cars is around 12+ years, in Slovakia it is higher in the long term - which increases pressure on safety, servicing costs and emissions. From the CFO's point of view, a vehicle renewal policy is therefore a real financial instrument, not a "nice-to-have".

How to adapt the car policy for 2026: recommended framework (HR + CFO)

1) Define the objective: cost, ESG or employer branding?

Most often a car policy has multiple objectives at once. For 2026, I recommend adding 3 measurable KPIs:

• TCO / monthly budget per category (including claims and downtime),
• Emission cap (g CO₂/km) or mandatory electrification share in each category,
• safety standard (assistance systems, tyre policy, training).

2) Ditch the vehicle categories: from "position" to "mobility need"

Instead of a "manager = SUV" table, set up categories by job:

• City/Sales (short routes, parking, consumption),
• Regional (higher mileage, comfort, safety),
• Heavy duty / Van (utility needs, specs, bodywork).

CFO tip: for each category, add a mandatory conversion:

• Estimated annual mileage,
• monthly rental limit,
• limit of extra charge for exceeding mileage,
• damage and liability rules.

3) Set up VAT and logging rules directly in the policy

In 2026, it's worth adding a separate "Tax and Recordkeeping Rules" section:

• Definition of business and private rides,
• registration obligations (app, logbook, telematics),
• accountability: who approves exemptions and how documents are archived,
• penalties/consequences for non-compliance.

4) ESG part: simple but auditable

Recommended structure:

• Targets (e.g. % electrification/emission cap/consumption reduction),
• Selection rules (preferred fuels, exemptions, approvals),
• Data (what is collected: mileage, consumption, fuel type, CO₂, charging),
• Reporting (monthly dashboard for CFO, quarterly HR/ESG outputs).

5) Charging and refunds: mandatory chapter for hybrid/EV

If you go into PHEV/EV, without clear rules, chaos will ensue. Car policy should include:

• who is entitled to the wallbox/allowance,
• rules for domestic electricity refunds,
• use of public chargers (limits, types of networks),
• company parking and infra (where and how charging points will be created).

6) Safety and risk: damage, training, downtime

At a minimum, complete:

• Mandatory assistance systems (AEB, lane assist, adaptive cruise control by category),
• winter tyre and minimum tread rules,
• mandatory "defensive driving" training for selected roles,
• claims process (reporting within X hours, photo documentation).

Comparison of solutions: purchase vs. operating lease vs. long-term lease

Purchase (CAPEX)

Pluses: control over the asset, flexibility for long term holding. Minuses: tied-up capital, residual value risk, unforeseen service and damage costs, administration.

Operating lease (OPEX)

Pluses: fixed monthly cost, service/insurance bundled, less RV risk, easier to budget. Minuses: tied contract, need for discipline in mileage and rules.

Long term lease (flexibility)

Pluses: quick availability, more flexible periods, good for transient needs (projects, onboarding, season), lower internal workload. Minuses: for long horizons it may be less profitable than a well set up operating lease.

How AVIS fits in (practically):

• AVIS MaxiRent typically addresses long term leases on a horizon of months (suitable for transient fleet needs and quick capacity coverage).
• AVIS Lease is suitable for a systematic corporate fleet and setting up rules for operating leases.

Frequently Asked Questions (FAQ)

1) Does a car policy need to have an ESG chapter in 2026? It doesn't have to "formally", but in practice companies need it due to reporting, tenders and supply chain pressure.

2) What is the biggest mistake in fleet electrification? Deploying PHEV/EVs without charging rules, reimbursements and real usage data.

3) How to set fair private car usage rules? Define if it is a benefit, set clear limits (days/km) and set measurable records.

4) When does a long-term lease make sense instead of an operating lease? When you need to cover capacity quickly (new project, seasonality, onboarding) or you don't want to be tied into a long contract.

5) What data should a CFO see on a monthly basis? Monthly cost per vehicle/category, mileage vs. limit, damage, downtime, consumption/CO₂ and electrification ratio.

TL;DR (summary)

• Car policy 2026 combines TCO, VAT compliance and ESG data - not enough "car list".
• In Slovakia, address VAT deduction rules and trip records directly in the policy from 1/1/2026.
• Set KPIs: monthly budget/TCO, emission cap and safety standard.
• For PHEV/EV, add a chapter on charging and refunds - otherwise costs and dissatisfaction grow.
• Consider a mix of operating leases and long term leases to suit teams' needs.

Keywords and entities (used + related)

Main KW: car policy, ESG

Related KWs and entities: corporate fleet, fleet management, operating lease, long-term lease, TCO, CAPEX, OPEX, CO₂ emissions, WLTP, electrification, BEV, PHEV, charging, Scope 1, Scope 2, Scope 3, CSRD, ESRS, Euro 7, vehicle safety, telematics, logbook, 2026 VAT deduction, Slovakia, European Union, AVIS Lease, AVIS MaxiRent.

Conclusion and CTA

If you want to have a car policy ready for 2026 without unnecessary risks (VAT, reporting, costs), I recommend to do a short audit: categories, mileage, logbook, ESG KPIs and charging rules.

Do you want a car policy template or a TCO calculation for your categories? Contact us - we will draft the policy and recommend a suitable combination of operating lease (AVIS Lease) and long term lease (AVIS MaxiRent) according to your needs.

Resources

• Financial Administration of the Slovak Republic - changes to the rules for VAT deduction on passenger vehicles from 1 January 2026
• European Commission - CO₂ standards for new cars and vans (Regulation 2019/631 and its changes)
• Council of the EU (Consilium) - CSRD and timetable for implementation
• European Environment Agency (EEA) - CO₂ emissions statistics for new vehicles
• ACEA - data on vehicles on Europe's roads, age of the fleet
• ICCT - market monitor: share of BEVs in company car registrations
• AVIS websites: avismaxirent.sk, avislease.sk (products, services, blogs)