COUNCIL IMPLEMENTING DECISION amending Implementing Decision
(EU) 2018/485 authorising Denmark to apply a special measure derogating
from Article 75 of Directive 2006/112/EC on the common system of value
added tax
Without a derogating measure, the legislation in Denmark provides that if a light goods
vehicle with a maximum authorised total weight of three tonnes is registered with the
Danish authorities as being used for business purposes only, the taxable person is allowed
to deduct the full input VAT on the purchase and running costs of the vehicle. If such a
vehicle is subsequently used for private purposes, the taxable person loses the right to
deduct the VAT incurred on the purchase cost of the vehicle.
To mitigate the consequences of that regime, Denmark requested authorisation to apply a
special measure derogating from Article 75 of Directive 2006/112/EC. The Derogation was
granted by Council Implementing Decision 2012/447/EU and subsequently by Council
Implementing Decisions (EU) 2015/9922 and (EU) 2018/4853 Decision (EU) 2018/485 is
set to expire on 31 December 2020.
The measure would allow taxable persons who have registered a vehicle only for business
purposes to use the vehicle for private purposes, and to calculate the taxable amount of the
deemed supply of services pursuant to Article 75 of Directive 2006/112/EC on a daily
flat-rate basis, rather than lose their right to deduct the VAT incurred on the purchase cost
of the vehicle.
That simplified calculation method should, however, be limited to twenty days of use for
private purposes for each calendar year, and the flat-rate amount of VAT to be paid should
be fixed at DKK 40 for each day of such use. That amount has been set by the Danish
Government on the basis of an analysis of national statistics.
Source: europa.eu
