Thursday, January 8, 2015

Difficult VAT rules gives shortage of rental cars – Aftenposten

Difficult VAT rules gives shortage of rental cars – Aftenposten

New regulations leads to car rental services end up paying extra tax, newspaper Nationen.

The government tried in the state budget for 2015 to clean up the VAT rules for rental cars, but have failed completely, believes the industry itself.

– It takes 48 months before we get written by all VAT on a car, but we are obliged to sell the cars after 18 months.

Then it is exactly the same before and after the government change, says Ole Grønvold, CEO of RAC Norway .

Trouble in north

The reasons why they want a limit of 18 months, then they can rent cars in the two peak periods and then sell them.

The problem is greatest in Northern Norway, due to large fluctuations in tourism during different seasons.

Car gets used car

car rental services required to owning cars some time before they get the VAT back, to avoid that the cars be resold immediately. Grønvold understand why there are such claims, but said 18 months should have been enough.

– When the car is undeniable a used car, he said.

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Published: 08.jan. 2015 8:46

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