EU extends Romania's 50% VAT deduction cap on mixed-use company vehicles to 31 December 2029

What changed in detail

Council Implementing Decision (EU) 2026/2495 of 29 October 2026, published in the Official Journal (L series) on 5 November 2026, amends Implementing Decision (EU) 2024/1641 and extends Romania’s authorisation to apply two special measures derogating from Article 26(1)(a) and Article 168 of the VAT Directive (2006/112/EC):

• limiting to 50% the right to deduct VAT on the purchase, intra-Community acquisition, importation, hire or leasing of certain motorised road vehicles, and on expenditure related to them, where the vehicles are not used entirely for business purposes; and
• relieving taxable persons from treating the private use of those vehicles as a supply of services for consideration.

The previous authorisation was set to expire on 31 December 2026. Article 1 replaces Article 5(2) and (3) of Decision 2024/1641 so that the decision now expires on 31 December 2029. Any request for a further extension must be submitted to the Commission by 31 March 2029, with a report reviewing the percentage limitation. Romania had requested the extension by letter registered on 19 May 2026, reporting that the 50% limit remains appropriate. The decision takes effect on the date of its notification and is addressed to Romania.

What it means

Nothing changes for Romanian businesses: the 50% cap on input VAT for mixed-use cars simply carries on past 2026, so there is no reason to reconfigure deduction rules or reopen the private-use self-supply question. The useful fact is the horizon — the cap is now secure through 2029, which matters for multi-year leasing decisions.