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Fleet Handbook Germany

de-products
Products
  • Full Operational Lease
  • Operating Lease
  • Financial Lease
  • Fleet Management
  • Sale and Leaseback
  • Motivational Lease
  • AlphaElectric
  • AlphaCity
  • AlphaGuide
  • AlphaRent (rental services)
  • UVV Management
Services

Service, maintenance and repairs, tyre management, insurance, accident management, roadside assistance, replacement vehicles, pre-contract vehicles, road and radio tax, registration services, fuel management, strategic management, fleet consultancy, optimised purchasing conditions, fleet administration, fleet process mapping, online reporting, online car configurator, driving licence control, risk management, direct driver contact, 24/7 hotline.

Term and mileage for Operating Lease
  • Minimum: 12 months /10.000 km per annum
  • Maximum: 60 months /200.000 km
de-registration
Title

All vehicles have to be registered with the local municipality to receive registration plates and documents. The dealership or delivering provider handles the registration. The lessor is considered the legal owner of the vehicle. Currently, the cost of registration is approximately €100,00 excl. VAT, including the cost of the registration plates.

Transfer of title

Not applicable in Germany.

Required documentation

The documentation required includes power of attorney and a copy of an identification card from the company’s authorised signatory. Proof of insurance (Versicherungsbestätigung), the certificate of registration (Handelsregisterauszug) and a SEPA Direct Debit Mandate (SEPA Lastschriftmandat) may also be required.

Time frame

Vehicle registration takes approximately one to two days once the vehicle and registration documents have been delivered to the dealership.

de-taxation
VAT rate

The current VAT rate is 19%.

Other vehicle-related taxes and fees
  • Road tax (Kfz-Steuer)
    Road tax depends on the engine capacity (cc) and on the emissions level. For example, the road tax for a BMW 320d is currently €200,00 per year. Although this tax is paid annually in advance, some leasing companies factor it into the monthly lease rate.
  • Radio and TV tax (Rundfunkbeitrag)
    Every vehicle with radio and/or TV registered in
    Germany is required to pay a fixed fee of €5,83 per month.
  • Registration fee (Zulassungsgebühr)
    A one-time registration fee is levied when first registering a vehicle for registration plates and documents. This fee currently amounts to approximately €120,00 excl. VAT.
  • Vehicle transportation costs (Überführungskosten)
    The vehicle transportation costs are generally divided into two parts:
    - Freight costs: these costs cover the transportation of the vehicle from the plant to the dealership and are dependent on the location of the dealer and the vehicle model.
    - Delivery costs: these costs cover the transportation of the vehicle from the dealer to the customer and depend on the distance.
Example:
 
BMW 320d  
Net list price: €31.302,52
VAT (19%): €5.947,48
Gross list price: €37.250,00
Road tax (per month): €19,67
Radio/TV tax (per month): €5,83
Registration fee (one-off): €120,00

 

Tax refund and accounting

VAT related to company cars used by employees for both business and private use is fully deductible.
From a customer’s point of view, monthly lease payments are treated as operating expenses and are accounted for in the lessee’s profit and loss account. The lessor (leasing company) capitalises the leased vehicles in its books, as the owner of the vehicles.

de-company-car

Private use of a company car is considered as taxable benefit. The euro value of the private use depends on the employee’s personal income tax rate and social security contributions.

BIK can be calculated using the 1,0% rule:

  • 1,0% of the list price of the car including VAT plus 0,03% of the list price of the car including VAT multiplied by the distance (in km) between the employee’s home and office.
  • The sum is the total monthly taxable benefit and is therefore subject to monthly income tax and social security contributions.
Example:
 
BMW 320d  
Gross list price (incl. VAT): €37.250,00
1,0% of gross list price €372,50
0,03% of the gross list price*
= €11,75 x 10 km
(*distance between home and office is ten kilometres)
€111,75
Total: €484,25

€484,25 would therefore be added to the employee’s gross monthly salary and taxed at their personal tax rate. The employer is responsible for deducting the monthly amount from the employee’s salary.
In addition to the 1,0% regulation, employees have the option of calculating their company car taxation based on actual private mileage driven. Employees who use this method are obliged to maintain a logbook. An excess or deductible has the effect of reducing the benefit-in-kind of a company car.

de-contact

Alphabet Fuhrparkmanagement GmbH
A BMW Group Company
Lilienthalallee 26
80939 München
Germany

Phone: +49 89 99822-0
Fax: +49 89 99823-0
Email: a-z@alphabet.de
Internet: www.alphabet.de

Latest update: November 2018