Tax on private use
When your employees use a car with yellow plates or ‘parrot plates' (papegøjeplader) for private purposes, you need to pay tax on the value of having a company car at your disposal.
When, as employer, you use a car with yellow plates or ‘parrot plates' (papegøjeplader) you cannot deduct the expenses in your business accounts.
Deduction for business expenses
VAT and private use
If the allowed total weight of the vehicle is maximum 3 tons and it is used for both private purposes and purposes subject to VAT, you are entitled to deduct VAT on your operating costs. Such costs could be petrol, repairs and ferry tickets.
If the allowed total weight of the van exceeds 3 tons, you are entitled to a deduction for the driving you do for business purposes.