VAT deduction when leasing a passenger car (white registration plates)
When leasing a passenger car for commercial use, part of the VAT on the leasing costs is deductible.
Lessor/leasing company must state how much of the VAT amount is deductible on the invoice or at least make the figures available.
Condition for deductibility
It is a condition that the leasing period for each car is at least 6 months (consecutive), and that at least 10% of the yearly usage of the leased car concerns the company’s VATable activities. Generally, it is not a requirement that a log is made available, however the company should be able to provide evidence that the vehicle is used for the purposes of the VATable business for at least 10% of its total usage.
Jacob Holme, Senior Manager PwC Mobil: 2328 8775 E-mail: firstname.lastname@example.org
VAT when leasing a van (yellow plates)
VAT on leasing payment as well as operation costs are partially deductible if used in relation to the purpose of the business, the VAT deductible will depend on the use of the vehicle.
Jacob Holme, Senior Manager PwC Mobile: +45 5183 8107 E-mail: email@example.com