Denmark Implements Reverse Charge VAT for B2B Telecommunication Services from 2024

• Denmark is introducing the reverse charge VAT mechanism on B2B telecommunication services from 1 January 2024
• The measure aims to prevent VAT fraud
• The mechanism will be applied to services purchased by Danish taxable persons who primarily resell those services to other Danish taxable persons
• The purchaser’s own use of the services must be insignificant for the mechanism to apply
• The Danish VAT due will be settled by the initial purchaser of the services
• The mechanism is in line with provisions of the EU VAT directive
• The regulation provides a list of telecommunication services to which the mechanism applies
• The new rule expands the reverse charge mechanism to apply to local supplies of telecommunication services.

Source: taxathand.com

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.

---

---