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Fleet Handbook Denmark

dk-products
Products
  • Full Operational Lease
  • Operating Lease
  • Financial Lease
  • Fleet Management
  • AlphaElectric
  • AlphaGuide
  • AlphaCity
Services

Service, maintenance and repairs, tyre management, insurance, road assistance, replacement cars, rental cars, administration of vehicle excise duty, fuel management, fleet consultancy and reporting.

Term and mileage for Operating Lease
  • Minimum: 24 months/no minimum mileage
  • Maximum: 60 months/no minimum mileage
  • Maximum mileage included: 250.000 km
dk-taxation
VAT rate

The current VAT rate is 25%.
Leasing payments on financial or operational leasing are subject to 25% VAT. Service expenses in the leasing payment are also subject to 25% VAT.
When Alphabet administrates the fuel and insurance, the customer does not have to be charged 25% VAT. The absolute condition is that Alphabet only invoices the customer for the actual expense. Insurance is not subject to VAT.

Other vehicle-related taxes and fees
  • Registration tax
    When a car has to be registered at the ‘DMR’, there is a fee of DKK 1.180,00. This is a non-recurrent fee and will always be included in the purchase price of the car and hereby calculated in the leasing payment.
  • Vehicle environmental fee
    The lessee pays a yearly vehicle environmental fee to the Danish government. The environmental fee is individual and based upon the CO2 emissions.

 

Tax refund and accounting

Leasing contracts for cars registered as passenger cars can deduct a part of the VAT charged on the leasing contract. The VAT deduction depends on the car tax in Denmark at the time of the first registration.

The size of deduction is determined by the age of the car and can be categorised as follows:

  • Age 0–36 months = 0,50% of the original registration tax/fee
  • Age 36 months and older = 0,25% of the original registration tax/fee
     
Example:
   
Car tax   DKK 200.000,00
Monthly VAT deduction the first 36 months of the leasing contract:
0,50% of DKK 200.000,00
  DKK 1.000,00
Monthly VAT deduction after 36 months:
0,25% of DKK 200.000,00
  DKK 500,00

The lessee cannot deduct a higher amount than the charged VAT on the monthly leasing payment.

dk-company-car

If a company supplies cars for the employees, without restrictions, the employee/user will be taxed.

The tax is calculated as a percentage of the list price including equipment. If the user or the leasing company obtains a discount on the purchasing price, the net price will be the price used for the tax calculation. Any retrofitted equipment is excluded for the tax calculation.

The user of a company car without restriction shall according to the Danish tax law (ligningsloven §16, stk. 4) add the following to their yearly income:

  • 25% of the car value up to DKK 300.000,00
  • 20% of the car value over DKK 300.000,00

There is a minimum value to be taxed of DKK 160.000,00, regardless of whether or not the purchase price is lower than this amount.

Calculation example:

The list price of the car is DKK 400.000,00.The user has to add the following amount to their income
for taxation:

  • 25% of DKK 300,000.00 = DKK 75.000,00
  • 20% of DKK 100,000.00 = DKK 20.000,00

The user has to add DKK 95.000,00 to their income for
taxation.

dk-contact

Alphabet Denmark
A BMW Group Company
Borgmester Christiansens Gade 50
2450 København SV
Denmark

 

Phone: +45 70 151544
Email: info.dk@alphabet.com
Internet: www.alphabet.com/dk

 

Latest update: November 2018