New rules need to be put on the table. At least when it comes to car dealers' tax settlements with the state, says Tax Minister Rasmus Stoklund (S).
Tax Minister Rasmus Stoklund (S) has announced new rules for the taxes that car dealers must handle.
It specifically concerns the security that dealers must provide in connection with the calculation and payment of car taxes.
The purpose is to adjust the economic conditions for car dealers through a changed model for collateral.
The Ministry of Taxation writes this in a press release .
Many car dealers today use a system where they can calculate and state the registration tax themselves for the cars they sell.
The tax system is a burden on the industry, say retailers
This system requires the dealer to provide financial security to the state. The security, which usually takes the form of a bank guarantee, is intended to cover the state's potential losses if a dealer fails to pay the registration tax anyway.
The amount of the required security is determined based on a so-called staircase model, which is based on how much tax the individual dealer has paid over the past 12 months.
There has been criticism from the automotive industry that the existing ladder model may lead to demands for disproportionately large collateral.
Since a bank guarantee entails costs for the dealer, unnecessarily high requirements constitute a financial burden.
Therefore, there is a desire for security to reflect the real risk more accurately in order to reduce the costs associated with the administration of car taxes.
Based on dialogue with, among others, the Danish Automotive Industry Confederation and Dansk Metal, the tax authorities have analyzed the current system. The analysis has led to a proposal to change the rules.
The changes include introducing more steps in the ladder model, ensuring that fluctuations in a retailer's business volume result in a more proportionate adjustment to the collateral requirement.
At the same time, the basis for calculating the business volume is being adjusted to make it more accurate. The intention is to ease the financial burden on companies.
– In the government, we have a general focus on removing and easing burdens for our companies. The automotive industry and the authorities agree that the collateral scheme is for everyone's benefit.
– But the automotive industry has found that the economic burden of the existing scheme is too great.
– We have listened to this and now found a model that eases the burden without compromising the security that car dealers pay the taxes they are due, says Minister of Taxation Rasmus Stoklund.
The adjusted staircase model is designed to target the requirements at those companies that have historically posed the greatest risk to the treasury.
The authorities' assessment is that the changes will therefore not result in a significantly increased risk of abuse or loss to the state.
A draft of the announcement on the change has now been sent for public consultation, and the new rules are expected to enter into force on July 1, 2025.
