Tax Adjustment on Foreign Supplier’s Services for Danish Online Gambling Company

• A company provided betting and online casino services in Denmark and Greenland which were exempt from VAT under the gambling laws
• A foreign supplier provided services worth approximately 10.3 million DKK to the company from July 1, 2019, to December 31, 2021
• These services included the delivery of odds and a gaming platform used by the company
• The Tax Authority increased the company’s VAT liability by about 2.6 million DKK due to the reverse charge mechanism under VAT law
• The company appealed this decision claiming the services from the supplier should also be VAT exempt
• The National Tax Tribunal noted the company was based locally, and thus the services from the foreign supplier were considered local under VAT law
• The Tribunal explained that the supplier’s services were not the same as the company’s since they did not involve offering a chance to win a prize against the risk of paying for potential winnings
• The Tribunal ruled that using the supplier’s services for the company’s VAT-exempt activities did not make the supplier’s services VAT exempt
• The Tribunal upheld the Tax Authority’s decision to increase the VAT liability of the company

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.

---

---