A number of conditions apply to deducting 100% VAT on expenses related to the use of a company vehicle, including the type of vehicle and mileage tracking. These conditions are briefly discussed below.

A 100% VAT deduction on expenses related to the use of a company vehicle applies to vehicles with a carrying capacity of over 3.5 tons and those carrying more than 10 passengers. Form VAT-2 is submitted to the tax office.

In cases where a passenger vehicle is used exclusively for company business, its mileage is tracked, and the company follows vehicle use regulations. Form VAT-26 is submitted to the tax office.

If a passenger vehicle is used for mixed purposes, both business and personal, a 50% VAT deduction applies to expenses related to the use of the vehicle.