Vehicle Registration Tax and Car Leasing

SKAT is strongly concerned with vehicle registration tax cases, in relation to vehicle dealers, leasing companies and individuals.

In recent years, SKAT has undertaken a large-scale project targeted especially at vehicle dealers. SKAT is of the opinion that vehicle dealers have transferred some of their profit from the sale of new vehicles to either optional equipment or the used vehicles which the dealers have taken in part exchange for new vehicles. We are assisting a number of vehicle dealers in such cases.

In addition, SKAT is also currently focusing on whether leasing companies are acting correctly in connection with the wording, financing etc. of so-called flexible leases.

There may be major consequences for both the leasing companies and lessees should SKAT find that the contract documents do not comply with applicable legislation. We have extensive experience in advising both leasing companies and private individuals on these matters.

SKAT often brings cases for the collection of vehicle registration tax against private individuals who are deemed by SKAT to be wrongfully using a vehicle which is exempt from tax or subject to a reduced tax rate. Such cases may, for example, concern luxury cars on foreign number plates.

SKAT also has a strong focus on site huts and camper vans, which may be registered at reduced tax rates if the applicable rules are followed.

There may be major consequences if SKAT finds that a tax-exempt vehicle or a vehicle in respect of which reduced tax has been paid is being used for the wrong purposes. In such cases, SKAT will usually demand payment of the full registration tax, and will often seize the vehicle as security for payment of the vehicle registration tax and any fine levied.