Pincvision Distance sales: More power for Danish authorities to tackle unfair VAT competition
24 July 2015
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In short: VAT distance sales are (internet) sales of goods to Danish private individuals whereby the goods are transported from a member state to private individuals in Denmark. If the threshold of 280,000 DKK (approximately € 37,500) is passed, 25% Danish VAT is due for these sales.
The Danish tax authorities discovered that not all foreign VAT taxable persons that perform distance sales to Denmark and should pay Danish VAT, actually pay Danish VAT. This results in distortion of competition with the companies who correctly charge Danish VAT, and of course less VAT revenues for Denmark.
