Danish Tribunal: VAT on Aircraft Parts Sent Abroad for Repair—Taxable Only if Not Returned to Denmark

• Transfer of worn aircraft parts from Denmark to Germany for repair is not a taxable transfer under Danish VAT Act § 10 if the parts return to Denmark after repair.
• If the repaired parts are shipped directly from Germany to another EU country, the transfer is taxable under § 10(1).
• The exception in § 10(2)(7) only applies if the goods return to Denmark after repair.
• The Tribunal affirmed the Tax Council’s decision: only returns to Denmark are exempt; direct shipments to other EU countries are taxable transfers.
• The company’s service to airlines remains VAT-exempt under the aviation exemption, but the movement of goods for repair is subject to specific VAT rules depending on the destination after repair.

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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