Reduction of VAT Base – Sales to Retailers – Discounts to Final Consumers

• The case involves a company selling goods in Denmark to retailers with Danish VAT applied.
• Retailers sell these products to final consumers, also with Danish VAT.
• Consumers can enter a product’s serial number on the company’s online portal to receive a rebate via a payment card.
• The payment card is issued by a company in a third country, which pays the rebate amount to the consumer.
• A related company in another country is billed for the rebate amounts, which are then charged to the original company.
• The original company ultimately bears the cost of the rebate given to consumers.
• The tax authority confirmed that the company can reduce its VAT base by the rebate amount, in line with EU Court of Justice practices.

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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