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Credit Note Flexibility: Suppliers can now issue credit notes or corrected invoices to adjust VAT without directly reimbursing customers, streamlining refund processes, reducing cash-flow issues, and lowering the risk of disputes over incorrectly charged VAT.
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Direct Customer Claims: Customers may claim VAT refunds directly from the Danish Tax Agency if supplier recovery is difficult, provided the VAT was already paid, offering greater flexibility in cases of supplier insolvency or unresponsiveness.
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Restrictions and Safeguards: Direct claims are prohibited if the supplier has already been refunded, issued a credit note, or successfully invokes a limitation defence, ensuring fairness, preventing double recovery, and maintaining the integrity of Denmark’s VAT system.
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Special and Practical Cases: Employees wrongly registered as taxable persons are assessed individually, while businesses must update compliance procedures, track claims carefully, and understand the new rules to benefit from streamlined refunds and reduced administrative burdens.
Source: vatit.com
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