5 Major Developments in Denmark

5 Major Developments in Denmark

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

• Extension of Special Measure for VAT on Private Use of Light Goods Vehicles in Denmark

• Couple Convicted of VAT Fraud in Denmark and Sentenced to Prison and Fines

• CSGO Empire coins are not exempt

• Council Implementing Decision to allow Denmark to apply a special measure derogating from Article 75

CESOP

• Global VAT Guide: August 2023 VAT Updates | Taxback International

Cryptocurrency and NFT

• CSGO Empire coins are not exempt

• Clarification on taxation of locked and released digital currency

• Guidance on VAT and payroll tax for non-fungible token (NFT) transactions

• Guidance: VAT and artistic activity – “crypto art”

Customs

• Section 12 of the VAT Act – Section 39 of the Customs Act – duty to pay import VAT of goods which had been evaded to Customs Supervisory

DAC7

• Decree on platform operators’ reporting obligations regarding sellers and lessors (DAC7)

Deduction (Input Tax Credit)

• Sale of building plots used for VAT-exempted business respectively provided free of charge

• Case: Subcontractors – denial of deduction for purchase VAT and tax deduction – unusual circumstances

• Global VAT Guide: August 2023 VAT Updates | Taxback International

Digital Services Tax

• KPMG Week in Tax: 14 – 18 August 2023
• Increase in VAT Audits of Nonresident Digital Services Providers

E-Commerce / Electronic Services

• CSGO Empire coins are not exempt

• Uber rides – VAT on received intermediary services with reverse charge – Excise duty on passenger transport services

E-invoicing

• Requirements for digital standard bookkeeping systems – No mandate for sending/receiving E-Invoices

• Denmark SAF-T: Businesses obliged to use certified accounting software able to produce and receive e-invoices

ECJ (European Court of Justice)

• New ECJ VAT Case C-594/23 – Denmark vs. Lomoco Development and Others

• Flashback on ECJ cases C-200/90 (Dansk Denkavit and Poulsen Trading) – VAT Directive prohibits a fiscal levy charged on both VAT and other commercial activities and assessed in the same way as VAT

• Flashback on ECJ cases C-297/89 (Ryborg) – ‘Normal residence’ corresponds to the permanent centre of interests of the person concerned

Excise

• Interest on Corrections of VAT and Excise Duties for Past Periods Effective 1 July 2023

Exemption

• CSGO Empire coins are not exempt
• Global VAT Guide: August 2023 VAT Updates | Taxback International
• Guidance: VAT and artistic activity – “crypto art”

Flat Rate Schemes

• Proposal to allow Denmark to deviate from article 75: flat-rate scheme for the private use of light goods vehicles

Fraud / Tax Evasion

• Couple Convicted of VAT Fraud in Denmark and Sentenced to Prison and Fines

• Part-time employee acquitted of VAT fraud and not considered a real co-owner or leader.

• Denmark: Conviction for VAT and tax fraud with conditional sentence due to personal circumstances

• Fraud case before Western High Court – Cars, fictitious invoices, etc.

• Eastern High Court: Punishment – VAT fraud – withholding tax – community undermining character – document forgery – subcontractors

• Seven individuals charged with VAT fraud

• Vestre Landsret court: Tax fraud and international boat sales

• Eastern High Court: Punishment, VAT fraud, fraud, acquittal, misuse of identity

• National Tax Tribunal: Denial of Registration for VAT

• National Tax Tribunal: Tax Authority was entitled to interrupt the payment deadline of 3 weeks

• Denmark reverse charge on telecoms and other fraud measures

Importation

• Section 12 of the VAT Act – Section 39 of the Customs Act – duty to pay import VAT of goods which had been evaded to Customs Supervisory

Legislative Change

• KPMG Week in Tax: 14 – 18 August 2023

Liability (Reverse Charge/Withholding)

• Uber rides – VAT on received intermediary services with reverse charge – Excise duty on passenger transport services

• Global VAT Guide: August 2023 VAT Updates

Place of Supply

• Flashback on ECJ cases C-297/89 (Ryborg) – ‘Normal residence’ corresponds to the permanent centre of interests of the person concerned

Private Use

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

• Extension of Special Measure for VAT on Private Use of Light Goods Vehicles in Denmark

• Council Implementing Decision to allow Denmark to apply a special measure derogating from Article 75

Real Estate/Immovable Property

• Sale of building plots used for VAT-exempted business respectively provided free of charge

• Case: Construction for another’s account – time of agreement – time of construction

Refund

• Deposits from Members of an Owners’ Association to A considered consideration for the provided VAT liability benefits

Registration

• National Tax Tribunal: Denial of Registration for VAT

Reporting / Compliance

• New automatic functionality to reconcile amounts declared in the VAT return

• Late interests in case of VAT return’s corrections

• Five Key Questions About Denmark’s Digital Bookkeeping Act

• What are the new VAT return reconciliation checks implemented in 2023 in Denmark?

• KPMG Week in Tax: 14 – 18 August 2023

• Interest imposed on corrections to VAT returns resulting in a VAT liability

• Interest on Corrections of VAT and Excise Duties for Past Periods Effective 1 July 2023

• Increase in VAT Audits of Nonresident Digital Services Providers

• Global VAT Guide: July 2023 VAT Updates

• VAT returns in Denmark and the new reconciliation functionality

SAF-T (Standard Audit File for Tax)

• All you need to know about SAF-T in Denmark

• Denmark SAF-T: Businesses obliged to use certified accounting software able to produce and receive e-invoices

Tax Point (When the Chargeable Event Occurs)

• Clarification on taxation of locked and released digital currency
• Case: Construction for another’s account – time of agreement – time of construction

Taxable Amount

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

• VAT and capital gain – “financier contracts”

• Draft administrative guidance: Production levies charged by producers such as dairies and slaughterhouses must be included in the VAT base

Taxable Transaction

• New ECJ VAT Case C-594/23 – Denmark vs. Lomoco Development and Others

• Interest charged on corrections to VAT returns as from 1 July 2023

• VAT and capital gain – “financier contracts”
• Deposits from Members of an Owners’ Association to A considered consideration for the provided VAT liability benefits

Tax Authorities / Penalties / Interest

• New automatic functionality to reconcile amounts declared in the VAT return

• Interest on VAT corrections from 1st July 2023

• Late interests in case of VAT return’s corrections

• Denmark starts applying interest to VAT corrections from 1 July 2023

• National Tax Tribunal: Tax Authority was entitled to interrupt the payment deadline of 3 weeks

• Interest allowance – Interruption of the payment deadline for negative VAT – Risk of tax loss

• Court decides about VAT estimates and statute of limitations

• Global VAT Guide: July 2023 VAT Updates

• New regulations implemented on the imposition of interest by Tax Authorities for late VAT payments

Technology

• Five Key Questions About Denmark’s Digital Bookkeeping Act

TOGC (Transfer of a Going Concern)

• VAT on the Transfer of Assets to a Company – Business Transfer