Danish Tax Council Clarifies VAT Exemption for EU-Based Electronic Financial Institution’s Payment Services

• The Danish Customs and Tax Administration clarified VAT obligations for electronic financial institutions providing payment services.
• The taxpayer is an EU-based electronic financial institution using a mobile application for payment services.
• A third party was licensed to install API integration software for business customers to advertise in the application.
• The taxpayer sought clarification on VAT obligations for selling advertised goods and services and a marketing license.
• The Tax Council determined no VAT was required in Denmark for selling advertised goods and services, as the taxpayer was not an intermediary.
• No VAT was required for a license to a third party with economic activity in a non-EU country.

Source: news.bloombergtax.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.

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