Therefore is reasonable to reacquaint some of the basics regarding to VAT declaration lines 5.3 and 5.4. On the lines 5.3 and 5.4 of VAT declaration should be reported the number of cars used in business and the amounts of input VAT which is deducted in relation whit these cars. It should be emphasized that only cars used in business must be declared whereas it does not matter whether the car is used for taxable or tax-exempt business purposes.

The tax authorities should be informed about all vehicles used in business purpose even the associated input VAT is not deductible. The obtained data is important for tax authorities to follow the taxation of private use of automobiles with income tax and social tax, too.

There may be a situation quite often, when on the line 5.3 (car used in business100%) is recorded the number of cars in the corresponding box, but the input VAT related to these cars is not deducted.

Also is a typical situation when the entrepreneur uses the car for business purpose, but its total turnover is exempt from tax.

The number of cars must be shown on VAT declaration despite the fact that with regard to the input VAT of the car expenses are not deductible. This kind of situation can occur then the taxpayer has a car 100% for business use, but on some particular taxation period the car-related costs are VAT non-deductible. For example during vacation period then the car was not in use.

Also, do not forget that the deduction of input VAT is a right, not an obligation. May be that the taxpayer makes car-related expenditures but for deduction of VAT it does not have the correct invoice corresponding to VAT Act § 37.

Taxpayers who are engaged in the sale or rental cars, do not have submit data on VAT declaration lines 5.3 and 5.4 of cars bought for sale or rent, this information should be declared by taxpayers, whose will buy or rent these cars. It is quite logical and understandable that car dealers will not declare cars brought into warehouse for sale on VAT declaration on monthly basis because these cars are not used in its business in the meaning of obligation of declare related to VAT Act amendment.