Council of EU authorizes Denmark to apply VAT flat-rate scheme on private use of business cars

Council Implementing Decision (EU) 2023/2094 of 25 September 2023 amending Implementing Decision (EU) 2018/485 as regards an extension of the authorisation for Denmark to apply a special measure derogating from Article 75 of Directive 2006/112/EC on the common system of value added tax

• The Council of the European Union has amended Implementing Decision (EU) 2018/485 to extend Denmark’s authorisation to apply a special measure derogating from Article 75 of Directive 2006/112/EC on the common system of value added tax.
• This measure allows taxable persons who have registered a vehicle solely for business to use that vehicle for private purposes and calculate the taxable amount of the deemed supply of services on a daily flat-rate basis.
• The simplified calculation method is limited to 20 days of use for private purposes per calendar year.
• The authorisation will expire on 31 December 2026, and if Denmark requests a further extension, it must submit a report to the Commission by 31 March 2026.
• The special measure is not expected to have a significant effect on Denmark’s tax revenue or the Union’s own resources accruing from VAT.

Source eur-lex.europa.eu

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