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COMPANIES

LEGISLATION

On this page you can find some answers to frequently asked questions about legislation and taxation in relation to company cars.

LICENCE PLATES HAVE TO BE SECURELY SCREWED ON REGISTRATION TAX INCREASES AND REDUCTIONS IN THE REGISTRATION TAX
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From 15th November 2015, all licence plates on cars and vans must be securely fastened with at least two screws. The screws must be covered with a tight-fitting cap in the same colour as the place on the licence plate where the screw is fastened. Read more. 2008 saw the introduction of a new act on proportional payment of registration tax, allowing the leasing companies to limit payment of registration tax to the lease period for the vehicle. Read more. The registration tax varies according to the vehicle’s fuel consumption and safety standards. Read more.
TAXATION OF COMPANY CARS USED IN TWO COUNTRIES USING FOREIGN REGISTERED CARS IN DENMARK VAT ON CARS
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If you work in two countries, or if you live in one country and work in another, you can avoid being taxed twice for your company car. A double taxation agreement could be your best bet. However, every situation is different, so make sure you examine every aspect. As a general rule, you cannot use a foreign-registered car in Denmark unless you pay the Danish registration tax. This applies equally to leased vehicles. Read more. Part of the VAT on the lease payment for private vehicles used as company cars is deductible. The deduction cannot be more than 25% of taxable amount. Read more.
VAT ON COMMERCIAL VEHICLES VAT IN OTHER EU COUNTRIES TAXATION OF COMPANY CARS
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As a private company, the VAT you pay for leasing/renting and running a commercial vehicle is fully deductible – provided you only use it for business purposes. Read more. When Danish companies lease cars from other EU countries, they must pay VAT themselves at Danish rates. This removes any advantage in leasing from a country like Germany – under the old rules you could claim back all the German VAT. Read more. If your company car is rented or leased by your employer, you are taxed as if the employer had purchased the car. Read more.
COMPANY NAME OR LOGO ON CARS WITH YELLOW PLATES    
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As of 1st January 2013 it will be a requirement that cars with yellow license plates must bear a visible company name or logo and company registration number.
Read more