A company car is one of the first things a tax inspector looks at — and one of the places where businesses most often lose deductions through poor records. If you run a company in both Slovakia and Czechia, the rules look similar but differ in the details that decide how much you actually claim. In 2026 the gap widened, especially on VAT.
Do you need a logbook — Slovakia or Czechia?
In both countries a logbook proves the car serves the business: date, route, purpose, kilometres and odometer reading. In Slovakia you avoid it only if you use the 80% flat rate on fuel; otherwise the logbook is effectively required. In Czechia you can skip the logbook for income-tax purposes if you use the flat travel expense, but you must still prove business use for VAT.
The practical takeaway is the same on both sides of the border: no records, no deduction. If you are setting up bookkeeping for a Slovak company, our guide to professional accounting in Slovakia is a good starting point.
How is fuel claimed as a tax expense?
In Slovakia the Income Tax Act offers three routes: actual consumption from the registration certificate (increased by 20%), GPS tracking data, or an 80% flat rate of total fuel purchased with no logbook required. Example: on EUR 3,000 of fuel, the flat rate lets you claim EUR 2,400.
In Czechia you either claim actual fuel costs with proof of business use, or use the flat travel expense of CZK 5,000 per month per vehicle (up to three cars), reduced to CZK 4,000 if the car is also used privately. The flat expense replaces fuel and parking claims and removes the logbook for income tax.
VAT on a mixed-use car: 50% versus proportional
This is where the two systems diverge most in 2026. Slovakia introduced a new rule from 1 January 2026: for passenger cars (category M1) used partly privately, the flat VAT deduction dropped from 80% to 50%, covering the car, fuel, servicing and parking. Full 100% is possible only for exclusively business use backed by an electronic logbook.
In Czechia there is no flat rate at all. Under Section 75 of the VAT Act you deduct VAT only in the proportion matching real business use, estimated during the year and reconciled at year end. A cap on input VAT of CZK 420,000 also applies to selected M1 cars.
Depreciation caps: EUR 48,000 versus CZK 2 million
In Slovakia a passenger car sits in the first depreciation group over four years. Cars with an entry price of EUR 48,000 or more face an adjustment: depreciation above the equivalent of EUR 12,000 per year must be covered by a sufficient tax base, otherwise the base is increased.
In Czechia a passenger car is depreciated over five years in the second group, and since 2024 a hard cap of CZK 2,000,000 on the entry price applies to selected M1 cars — anything above is not tax-depreciable. Both countries, in short, limit the tax benefit of luxury vehicles, just through different mechanics.
Mileage allowance for a private car on a business trip
Both countries let an employee or director use a private car and be reimbursed with a basic per-kilometre allowance plus fuel. In Slovakia the basic allowance is EUR 0.313 per kilometre from 1 January 2026, with fuel reimbursed separately. In Czechia the basic allowance for a passenger car is CZK 5.90 per kilometre for 2026, with fuel added on top.
For many owner-managed companies this is simpler than putting the car into business assets, because it avoids depreciation, VAT adjustments and the logbook question altogether — you simply document the trip.
What this means for cross-border businesses
If you operate in both markets, do not copy one country’s treatment into the other. The Slovak 50% VAT flat rate has no Czech equivalent; the Czech CZK 5,000 travel expense has no Slovak twin. Mixing them is the single most common and most expensive mistake we see.
Decide the regime per vehicle and per country before the first tank of fuel, and keep the records that regime requires. If the choice is not obvious, our overview of Slovak tax advisory for companies shows when a specialist pays for itself. The maths differs, but the discipline — consistent, provable evidence — is identical.
Running a company car in Slovakia, Czechia, or both? We will calculate the logbook, flat-rate and full-deduction options on your real figures and set up records that hold up in an audit.
FAQ
Does Slovakia have an 80% flat VAT deduction on cars?
Not for passenger cars anymore. From 1 January 2026 the flat VAT deduction for category M1 cars used partly privately is 50%, including fuel and servicing. The restriction applies only to M1 passenger cars (and motorcycles); N-category commercial vehicles fall outside it and deduct VAT according to actual business use. Full 100% requires exclusive business use with an electronic logbook.
Is road tax still payable on a company car in Czechia?
No. Since the 2022 reform, passenger cars are not subject to Czech road tax and are not reported. Only selected heavy goods vehicles over 12 tonnes remain taxable, and this still applies in 2026.
Can I use the same car rules in Slovakia and Czechia?
No. The two systems differ on fuel flat rates, VAT deduction, depreciation caps and mileage allowances. Each has its own figures and legal basis, so treat each country separately and keep records to its own standard.