VATupdate
VAT

Share this post on

Uber driving – VAT on intermediary services received with reverse payment obligation

National Tax Court, Case number 18-0000809

The complaint was due to the fact that SKAT had ordered the complainant to pay DKK 8,442 in VAT on mediation services received with a reverse payment obligation and DKK 3,547 in payroll tax on personal transport services. In 2015, the complainant had acquired income totaling DKK 168,848 through the transport of passengers in the complainant’s own vehicle. The National Tax Court found that the complainant ran an independent economic activity during the period in question, cf. Section 3, subsection of the VAT Act. 1. It was taken into account that the complainant’s income from transporting passengers in the complainant’s own vehicle through the service of a Dutch company was, in the court’s view, with a view to obtaining income of a certain lasting nature. Consideration was also given to the fact that the complainant, when performing the transport services, was solely responsible for and personally incurred expenses for this, including any liability for damages. The appellant’s reference to a tax council decision on 25 January 2022 for a Wolt bid could not lead to a different result. A Dutch company made the service available to the complainant during the period in question. The company thus provided an intermediary service to the complainant, as the service mediated a contact between the complainant and the passengers. The National Tax Court found that the mediation services had a place of delivery in Denmark, cf. the VAT Act § 16, subsection 1, as the complainant’s transport of passengers took place in Denmark. As a result, the National Tax Court found that the complainant had to settle VAT on the company’s deliveries of intermediary services to the complainant in accordance with the rules on reverse payment obligations in section 46, subsection 1 of the VAT Act. 1, no. 3, as the company did not have a fixed place of business in Denmark. The National Tax Court noted, that the complainant’s driving was a passenger transport service, cf. the VAT Act § 13, subsection 1, no. 15. This meant that no Danish VAT had to be collected and paid for the complainant’s transport of passengers via the service, just as no deduction could be obtained for VAT-subject expenses which had been incurred in order to deliver the transport. The complainant’s result of the business before payroll tax amounted to DKK 86,112, which is why the owner was liable for payroll tax, cf. Section 2, subsection of the Payroll Tax Act. 2. The National Tax Court thus confirmed SKAT’s decision. DKK 112, which is why the holder was liable for payroll tax, cf. Section 2, subsection of the Payroll Tax Act. 2. The National Tax Court thus confirmed SKAT’s decision. DKK 112, which is why the holder was liable for payroll tax, cf. Section 2, subsection of the Payroll Tax Act. 2. The National Tax Court thus confirmed SKAT’s decision.

Source: skat.dk

Sponsors:

VAT news
VAT news

Advertisements:

  • AXWAY - VATupdate Banner
  • VATupdate.com