The Ministry of Finance has published a draft amendment to the VAT Act for inter-ministerial comments, which would introduce specific measures concerning the right to deduct tax and subsequent changes to the deduction. These measures specify the amount of VAT to be deducted, particularly in connection with assets used by the VAT payer for purposes other than business. For fuel, it will be possible to deduct VAT only in proportion to the extent of use for business purposes.
A payer who claims the cost of fuel consumed as a flat-rate expense up to 80% of the total documented purchase will no longer be able to apply this automatically for VAT deduction purposes. From 1 January 2025, companies wishing to deduct VAT on fuel will be obliged to keep records of journeys.
For movable assets with a purchase price exceeding EUR 1,700, which will be one of the new definitions of fixed assets, it will still be possible not to deduct VAT to the extent that these long-life assets will be used for a purpose other than business. If, on the basis of the records of journeys, the proportion of use of such assets for purposes other than business increases in subsequent periods, the payer will be obliged to reduce the VAT deducted.
Contact us
