Dansk Motor Finans now chooses to distance itself from “external self-reviewer”

With the new rules in Act no. 2193, which was passed by the Folketing on 25 November 2021, a legal basis is introduced to make joint and several liability for registration tax applicable.

The new law is effective from January 1, 2022.

In short, this means that the dealer is still on target for tax adjustments if the external self-declarant is no longer able to pay.

Note from the Danish Motor Agency’s newsletter on 22 December 2021:

“However, there has been an increasing tendency for companies that are self-registered as self-reviewers to use other self-reviewers to value vehicles. It is not appropriate for the person selling a vehicle not to be liable for the registration tax, as this would make it possible to isolate the tax liability of a company other than the one that profits from the sale of the vehicle. It has so far provided an obvious opportunity to circumvent the rules and thus avoid paying the registration fee. “

In 2018, Dansk Motor Finans established the concept of “external self-reviewer”, and was the first to launch an actual product for the Danish car industry. The product should eliminate uncertainties, risks and administration. A basic idea that hit the spot in the industry, and which made Dansk Motor Finans today Denmark’s largest external self-reviewer.

Legislation provides food for thought

DMF is considering the change in the law and will already start phasing out ”at the turn of the year.”Tax”Product by looking towards a far more sustainable service.

“Our vision is and has always been to secure the car dealers’ business, by creating risk- and administration-free products. Car dealers must concentrate on their core area – sales and purchasing, and not have a stomach ache over outsourcing risky tasks to external partners. Therefore, we do not see a future in our “Tax” product. This is not in line with our overall business approach ”.

To car dealers: Take care of yourself

When the new rules come into force, Dansk Motor Finans predicts uncertainty from dealers by letting external companies facilitate similar calculations of such proportionately large amounts. It provides a false sense of security, and with good reason according to the director:

In the future, it will be an easy decision for any car dealership to let external companies take the risk of self-declaring registration fees, on behalf of oneself. If you still choose to use external self-reviewers, they should undergo a major credit rating process by the company and its owners. ”

No longer “healthy competition” according to Dansk Motor Finans

In addition to the new legislation, the concept and basic idea is approaching its final destination, according to Dansk Motor Finans. The competition in the market over the past year has become too great and there have been too many smaller and unqualified players. This causes prices to be unduly pressured to gain market share. A competition that Dansk Motor Finans distances itself from.

Our product “TAX”, which is intended to help car dealers with valuation and self-report registration fees to the Danish Motor Agency, is, no matter the market and competition situation, a product we want on the shelf. The external self-reporting market is moving in a direction that we no longer want to be a part of. ” – Director, Rasmus Sandvej Juulsen.

Based on innovation and a sound and sensible approach, “TAX” has been a good product for Dansk Motor Finans and its dealer network in recent years, but the time has come to adjust the business model. The Jutland company, in addition to being busy in their leasing company and import business, is in full swing launching a new and more sustainable product, as a substitute for the “TAX” product.

No “Tax” – What do the Danish car dealers do then?

In the coming days, Dansk Motor Finans will launch a beta version of their new product, which makes it extremely attractive to be a self-reviewer in the car industry.

“We bring together the best of both worlds, by offering documentation and guarantees in a simple and fast online system – as the industry already knows. Here we are really talking about “No risk – no administration”. We want to go from being external self-reviewers to being external advisers and offer administration without risk to the car and leasing industry ”. – Sales Director Kim Asferg Mikkelsen

What are the benefits of the new product?

Being registered as a self-reviewer is in itself a great advantage for any car dealership. Based on the monthly statement at the Danish Motor Agency, it provides a good cash flow. The administrative part of preparing documentation and the risk of any regulations will be handled by Dansk Motor Finans in the future, with their new service.

Source: IT-Kanalen by it-kanalen.dk.

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