Pleasure craft insurance – tax on pleasure craft insurance – 29.033

A tax is levied on insurance of pleasure crafts of any kind registered in Denmark. This also applies to the machinery, fixtures and equipment of the pleasure craft. A tax is also levied on insurance of pleasure crafts which are wholly or partly used commercially. It is of no importance to the tax liability that the pleasure craft is kept periodically or permanently on shore if the insurance is maintained.

Insurance of pleasure crafts registered in Denmark is subject to tax regardless of whether the insurance has been taken out with Danish insurance companies or with foreign insurance companies with a representative residing in Denmark.

If there are changes to the information you have provided, for example termination of the duty to provide information, you must notify the Danish Business Authority (Erhvervsstyrelsen) thereof within eight days.

• Personally owned businesses can deregister excise duties at Edit company.

• Companies can deregister excise duties using the  Cessation of company or end of duty form.

• Windsurfers are regarded as pleasure crafts and are therefore taxable.

• Houseboats with own propulsion (engine) are regarded as pleasure crafts and are therefore taxable.

• A company that sells pleasure crafts and is engaged in financing activities has applied for an exemption from insurance tax for pleasure crafts that the company has repossessed as a result of the buyer’s lack of ability to pay. The insurance is taxable, and no exemption from tax can be granted.