5 Major Developments in Denmark

5 Major Developments in Denmark

• Denmark Tax Agency: Calculation payroll tax incl. VAT Danish branch of a Swedish bank

• Compensation for VAT to charitable associations

• Ruling: Compensation – protection areas close to drilling – property profit taxation and VAT

• Case: VAT exemption for full-body MRI scans

• Updated legislation: Pro rata calculation

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CESOP

• Danish Parliament Considering New Reporting Obligations for Payment Service Providers and Other Measures to Combat VAT Fraud

Deduction (Input Tax Credit)

• Updated legislation: Pro rata calculation

• VAT – deduction – branch of a company in another EU country

• Case: Increase in VAT liability – Unapproved deduction for purchase VAT – Operation of stud farms and breeding of racehorses

• Case: Input VAT and the operation of stud farms and breeding of racehorses

E-Commerce / Electronic Services

• Order on duty to provide information pursuant to Section 75, subsection of the VAT Act. 5 – Foreign internet companies

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

E-invoicing

• Countrywide E-invoice Mandate in Denmark (Full Guide)

ECJ (European Court of Justice)

• Flashback on ECJ Cases C-280/04 (Jyske Finans) – Exemption for delivery of goods for which the right to deduct is excluded – Resale of used vehicles by the lease company

Exemption

• Updated legislation: Pro rata calculation

• Case: VAT exemption for full-body MRI scans

• Draft legislation proposing additional reporting for VAT-exempt taxpayers

• Flashback on ECJ Cases C-280/04 (Jyske Finans) – Exemption for delivery of goods for which the right to deduct is excluded – Resale of used vehicles by the lease company

Fixed Establishment

• No fixed establishment in Denmark for a gas storage, as the company is of a preparatory or auxiliary nature

Fraud / Tax Evasion

• Proposal to increase the possibility of combating cross-border VAT fraud in connection with e-commerce

• Denmark proposes introduction of measures to fight cross-border VAT fraud

Intra-Community Transactions

• Guide: VAT on EU trade

• VAT – repair – combined service – transfer

Liability (Reverse Charge/Withholding)

• Proposal to increase the possibility of combating cross-border VAT fraud in connection with e-commerce

Rate

• Case: Newspapers not subject to 0% VAT

Refund

• Compensation for VAT to charitable associations

Reporting / Compliance

• Reporting issues (solved): Annual statement, advances and VAT unstable

Taxable Amount

• Ruling: Compensation – protection areas close to drilling – property profit taxation and VAT

• Case: Input VAT and the operation of stud farms and breeding of racehorses

Taxable Transaction

• Ruling: Compensation – protection areas close to drilling – property profit taxation and VAT

• Denmark Tax Agency: Calculation payroll tax incl. VAT Danish branch of a Swedish bank

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