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Danish Government Considers VAT Exemption for Domestic Flights to Boost Air Travel Industry

  • Danish government considering making domestic flights VAT free
  • Move aimed at helping airlines and local airports, simplifying rules
  • Currently, only airlines with majority of services abroad qualify for VAT exemption
  • Ministry of Transport announced potential change
  • Transport Minister believes it could support higher volume of domestic flights
  • Midtjyllands Airport could benefit from decision, received state backing in 2023
  • Law change proposed by Tax Ministry, to take effect in January 2025
  • Tax Minister believes changes will lead to more airlines bidding on domestic routes
  • Government also announced new air travel tax for flights departing from Denmark starting in 2025

Source: thelocal.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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