Tax, VAT and fees

We know it sounds like it, but it's not really that difficult, for example, to calculate the tax on a foreign registered car in Denmark. You will find more about that and other related topics on this page.

If you have questions about tax and VAT that you do not find answered here, you are very welcome to contact us.

If the vehicle is new, or no more than three years old, calculated from the 1st registration date when it is made available as a company car, the taxable value is the new vehicle price. The new vehicle price for a leased car is the price that emerged when the car was recalculated, called the recalculated technical new price. The three years are calculated from the time of first registration, and the following 36 months incl. registration month.

If your leasing agreement expires later than 3 years after the 1st registration date, the taxable value decreases by 25% from the 37th taxation month. However, the taxable value is always at least DKK 166,000.

If the vehicle is bought or leased more than three years after the first registration date, the car's purchase price is used as the taxable value, but at least DKK 160,000.

For vehicles registered for leasing for the first time on 1st of February 2020 or later, and where a recalculation of the vehicle's value has been carried out, it is the recalculated technical new price that is used as the tax value. However, the value cannot be lower than the price at 1st registration. The recalculated value must be used, from and including the month in which the recalculation was made, and until three years after the vehicle's first registration, however a driver who has had the car from new is taxed for a maximum of 36 months, from the 37th taxation month taxation falls as described above.

For vehicles registered for leasing for the first time before 1st of February 2020, the taxable value is the first 36 months of the leasing company's purchase price.

If your leasing agreement expires later than 3 years after the 1st registration date, the taxable value falls by 25% from the 37th taxation month. However, the taxable value is always at least DKK 160,000.

If a new leasing agreement is entered into on the car after the car has become 3 years old, the tax base will be the car's market price. However, the taxable value is always at least DKK 160,000.

If you have employees in your company who work in several countries or live in one country and work in another, the company car will often be taxed in both places. It is therefore important that you find a solution from the very start, which takes these circumstances into account and, if necessary, make an agreement on double taxation.

As a general rule, cars registered overseas must not be used in Denmark without Danish registration tax being paid on them. This also applies to leased cars.

There are exceptions, where it is permitted for a person with an address in Denmark to use a car registered overseas here in Denmark.

Contact LeasePlan, if you have other questions regarding cars in multiple countries.

Tel. +45 3673 8300 Email: lp@leaseplan.dk

The information contained in this document is for general guidance on matters of the reader’s interest only. The application and impact of laws can vary widely based on the specific facts. Given the changing nature of laws, rules and regulations, there may be omissions or inaccuracies in information contained in this document. This document is therefore provided on the understanding that PwC is not herein engaged in rendering tax or other professional advice and, consequently, the information should not be used as a substitute for consultation with professional advisers. Before making any decisions, you should consult a professional adviser at PwC.

PwC is not responsible for any errors or omissions contained herein or for the results obtained from the use of this information. All information is provided with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information. In no event will PwC, its partners and employees be liable to you or anyone else for any decision made in reliance on the information in this document.