The practice of businessmen in buying cars for company and (only) private use resembles the practice of the population in (not) observing anti-pandemic measures

The practice of businessmen in buying cars for company and (only) private use resembles the practice of the population in (not) observing anti-pandemic measures. A company buys a car also (only) for private use, claims full VAT deduction on the purchase as well as on the fuel, and includes the cost of the car (through depreciation) and the fuel in full in its tax expenditure. And even if the car is also used (only) for private purposes, the company does not tax or deduct anything on behalf of the employee/manager/associate. However, the rules of the game are completely different. Unlike the anti-pandemic measures, the worst case scenario when they are not followed can be dramatic, even with criminal consequences. Let us therefore see in the next newsletter how the law and the tax authorities approach the use of a car in a company for private purposes, i.e. the standard Slovak use case. In addition, there is also a short excursion into how the courts look at such complicated rules and how to potentially set up a structure in a business to maximise tax benefits and minimise legal risks.