Deduction of VAT on company cars after 1 January 2026:

What it means for companies, self-employed and why mobility as a service makes sense.

From 1 January 2026, the VAT deduction for cars used both privately and for personal use will be reduced to 50% (approved in the National Assembly of the Slovak Republic). AVIS MaxiRent and AVIS Lease therefore bring a clear "mobility as a service" framework to help entrepreneurs plan costs, minimise administration and focus on business. This press release explains the principles, clarifies what is changing in practice and offers transparent solutions for the period 2026-2028.

Key points at a glance

• From 1.1.2026, VAT deduction is reduced to 50% for vehicles used in combination (business and private).
• AVIS MaxiRent / AVIS Lease does not present VAT deduction as the main benefit of leasing: our aim is budget certainty, risk off the customer and less administration.
• With the GPS tracking and logbook service delivered , and with clear invoicing, AVIS supplies you with 100% of the supporting documents for a tax-clean and auditable process for 100% VAT deduction.
   

Why the behaviour of companies and individuals will change in 2026

The third consolidation package will touch every wallet - from businesses to individuals. Increased tax burdens and new VAT deduction limits will make businesses more aware of every expense. So they will naturally start looking for solutions that will bring them savings without unnecessary paperwork. It is mobility as a service that makes sense in this situation, as it combines fixed costs, transparency and the possibility of 100% VAT deduction when set up correctly. Those who decide early can gain a significant financial advantage over those who underestimate the change.
 

Businesses and the self-employed will weigh more heavily the total cost of ownership, cash-flow stability and administrative burden. The VAT change for combined use of vehicles only confirms the trend: mobility as a service wins more with clear terms and conditions, continuous mobility and one monthly payment.

What this means in practice

1. It's not about "tricks" with billing. The right to deduct VAT now depends primarily on the nature and demonstrability of the use of the vehicle. Prepayment, chaining of short-term contracts or other constructs largely do not change the percentage of deduction - only the time at which VAT arises.
2. the lease remains transparent. Invoicing "mobility as a service" (rental + service + insurance + tyres + assistance) is more transparent for accountants. However, this does not automatically mean a higher VAT deduction - it means a cleaner process.
3. Reporting and supporting documents are key. Clients should have regulated internal rules for vehicle allocation, recording of journeys and use of cars by employees. AVIS can help with rental and operating lease services on how to consistently prepare to ensure that the VAT deduction is still 100%.

ATTENTION - 2 simple cases for 100% VAT deduction:

1. the law explicitly describes a transition period from 1.1.2026, i.e. if you order a vehicle in 2025 and the contractual relationship also starts in 2025, you will be able to deduct 100% VAT throughout the contractual relationship after 1.1.2026.
2. If you pay any hire/operating le ase payment before 31.12.2025, you can claim 100% VAT deduction on it.
3. Below we will show a model example of VAT deduction and VAT paid in case of a Slovak company on a vehicle with a list value of €36,900 incl. VAT on the purchase of a vehicle on a lease of 12 months at €553.50 incl. VAT, 36 at €492.00 incl. VAT and 48 months at €430.50 incl. VAT.

Thanks to AVIS rental / operating lease, the customer has the basis for a tax-clean and auditable process for 100% VAT deduction and can thus save on the VAT paid. However, even if the customer chooses not to document the use of the vehicle for business trips only with the logbook and records, points 1 and 2 provide examples of how to avoid a lower VAT deduction.

How AVIS MaxiRent can help / AVIS Lease
 

• Error-free invoicing: one monthly invoice / instalment, breakdown into services, clear description of the services and periods. We reduce the risk of confusion during inspections.
• VAT-FAQ and consultation: we provide clients with a brief overview of the rules after 1/1/2026 and a list of "what to prepare" (without claiming to replace tax advice).
• Auditable records: possibility to link the lease with telematics and trip reporting (optional), so that the client has visibility and can defend the use of the vehicle. With AVIS' GPS tracking and logbook services linked to the rental vehicle, the client can prove 100% business use of the vehicle and deduct all VAT. In addition, it offers an unbeatable price of €3.99 excluding VAT per month when ordering the service until 15.12.2025.
• Mobility without down payment: no capital tied up in initial capital unless the client expresses interest, rental without down payment. Reliable record keeping and reporting or commencement of lease/operating lease in 2025 is sufficient

Model situations (illustrative)

• Self-employed consultant: Drives primarily for business, occasionally privately. From a VAT point of view, count on a limited deduction; internal records are decisive. Leasing gives him minimum hassle (servicing, insurance, tyres included) and a fixed payment, also 100% VAT deduction thanks to GPS monitoring and logbook.
• SMB (small and medium-sized business segment - up to 10 vehicles: the administration is cumulative. Renting means fewer individual invoices and simpler monthly closures. When audited, the company has a clear trail: contract, spare vehicles, performance overview, logbook, simple VAT deduction of 100%.
• Corporate: strong pressure on compliance and audit. Rental with central reporting in the form of GPS monitoring and logbook and spare vehicles in case of non-operation to reduce risks and downtime.

What AVIS MaxiRent and AVIS Lease offer:

AVIS MaxiRent is a unified car and commercial vehicle rental service available to individuals, sole traders and businesses. With a flexible commitment period from 2 to 12 months of your choice, a mileage limit of up to 5,000 per month and all services and fees included in the monthly rental fee.

AVIS Lease is an all inclusive car and commercial vehicle operating lease service available to everyone. With a fixed term of 36 to 72 months for the term of your choice and selected services included in the monthly rental fee.

What's included in the monthly lease:

• Prepaid mileage
• Collision and compulsory insurance
• Motorway vignette valid for the Slovak Republic
• Seasonal tyres, changing and storage
• Registration fee
• Road tax
• Assistance service
• Vehicle check-out at the end of the rental
• Guaranteed service inspection
• GPS monitoring, access to a clear portal to track vehicles, fuel, km, trips, electronic logbook.

"Our aim is not to look for shortcuts, but to offer clients absolute predictability and a fiscally clean process. From 2026 onwards, the value of transparency is rising - that's why we offer simple and concise invoicing, clear monitoring and reporting. At the same time, we are constantly striving to show clients ways to minimize and optimize their costs and expenses." says Samuel Jesenský, Sales Manager AVIS MaxiRent & AVIS Lease.

Summary - VAT after 1 January 2026

1. Does the length of the contract affect the percentage of deduction? - No - the nature and proven use is decisive. For combined use after 1.1.2026, the reduction to 50% applies.
2. Does the start of the rental contract affect the percentage of deduction? - Absolutely yes - if you order the vehicle in 2025 and the contractual relationship starts in 2025, you will be able to deduct 100% of the VAT throughout the contractual relationship after 1.1.2026.
3. Will paying a down payment help? - Absolutely yes - as long as you pay any down payment for rental / operating lease until 31.12.2025, you can claim 100% VAT deduction on it.
4. Can I have a 100% deduction? - Yes - But only if it is proven to be exclusively business use according to the applicable rules and methodologies, which you can prove very easily thanks to GPS monitoring and the logbook. This makes it possible to have a 100% VAT deduction.
5. Will you supply me with supporting documents for the audit? Yes - clear invoicing, GPS monitoring and logbook.

Frequently asked question: "If I pay a down payment on a lease or start a lease by 12/31/2025, will I avoid the 50% deduction?"

Yes. The law is clear about the point of acquisition after January 1, 2026, and it also refers to lease agreements for rentals or operating leases. Therefore, if you incur the consideration, whether a down payment or the entire lease payment, in calendar year 2025, you will avoid the 50% deduction.

The VAT deduction for company cars is fundamentally changing from 1 January 2026 and now is the ideal time to act. Those who secure a contract or pay a down payment in 2025 will also benefit from 100% deduction for the entire rental period after 2026. This opportunity will not be repeated, as companies and self-employed individuals will now only be entitled to 50% for combined use. Both AVIS MaxiRent and AVIS Lease are ready to offer solutions that will bring you a tax-clean process and budget certainty. Everything is under one invoice - rent, service, insurance, tyres and assistance. What's more, thanks to GPS monitoring and a logbook, you get a transparent basis for 100% VAT deduction. In 2026, there will be no room for experimentation or bending the rules - those who prepare in time will decide.

So don't delay your decision and take advantage of this unique opportunity this year. Order your vehicle via www.avismaxirent.sk or www.avislease.sk and gain an advantage that may be overlooked by the competition. With AVIS, you have the assurance of mobility, transparency and benefits to help you succeed in the new environment.

If you are interested, contact the AVIS sales department at info@avis.sk, info@avismaxirent.sk, lease@avislease.sk or by calling +421 2 2030 2100 or 0903 821 628.