Telecommunications Services – Reverse Charge VAT – Binding Response

• Skatterådet found that the delivery and installation of telephone and broadband connections, as well as billing against other teleoperators, could be considered telecommunication services.
• These services were subject to reverse charge VAT in cases where the recipient resold the services and any own consumption was negligible.
• Necessary equipment and additional technician hours ordered by the end customer were considered ancillary services to the telecommunication services and could also be subject to reverse charge VAT if resold.
• However, number porting, which is the transfer of a mobile number from one teleoperator to another, was not considered a telecommunication service or ancillary service and therefore not subject to reverse charge VAT.
• The rental of digital infrastructure, such as space on telecom masts, technical houses, or access to fiber cables, was not subject to reverse charge VAT as the lessee fully utilized the rented space themselves and did not meet the condition of resale.
• The legal basis for these findings is the VAT Act, specifically sections 21c(4) and 46(1)(12).
• The references for further guidance on this matter can be found in the legal guide for 2023, sections D.A.4.1.6.2, D.A.6.2.6.11, and D.A.13.2.2.10.

Source: info.skat.dk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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