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Requirements for "VAT exemption" on car leasing |
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This service is available only to companies registered for VAT
in Denmark! |
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In accordance with the EC court's decision of 17.07.1997 in the case C-190/95 only the location of the leasing company - and not the place of registration of the car - determines the VAT rates and possible deductions in relation to car leasing.
The decision led to a change of the Danish VAT legislation through law proposal no. L75, presented on 22. April 1998 by then tax minister Ole Stavad. However, the proposal only allows Danish companies certain deductions (25% of the VAT), if the car is leased from a Danish-based leasing company.
To qualify for the full VAT deduction the car/cars must be leased from a leasing company situated in, e.g., Germany.
Fleggard Leasing is situated just south of the Danish/German border, and the VAT rate is thus 16%. Furthermore, you have a right to a VAT refund on the leasing amount in accordance with German legislation.
This means that you can actually - if all conditions posed by the German authorities are fulfilled - get up to a 100% VAT refund on your total leasing costs on both financial or operational leasing.
Operational leasing at Fleggaard Leasing for instance includes: service, summer/winter tyres, gasoline/diesel, car wash, car phone, Falck subscription (car repair service) etc.
Nikosax undertakes the difficult and practical work in relation to your VAT refund in Germany as well as the current contact with the German authorities, while you spend your time performing the essentials and enjoying your advantageous company car(s).
Simply fill in our reply coupon concerning "VAT exempt" car leasing, and we will forward a non-binding offer containing a detailed overview of all requirements of the German authorities.
The EC court's decision in case C-190/95
Bill no. L75 for law on change of VAT legislation - as proposed - (Danish)
Bill no. L75 for law on change of VAT legislation - as adopted - (Danish)
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