Amedments of the VAT act as of January 1, 2010(Taxwatch (Tax news in english))
21-10-2009 15:08
Af
Hans-Henrik Nilausen
The Tax Minister has proposed a bill with amendments of the VAT act in order to implement the EC’s so called “VAT package”.
The materiel amendments are:
Cross boarder sale of services — business to business
In future cross boarder sales of services can be carried out without VAT. The purchaser must pay VAT in the home country. The rules will be similar to the ones that today apply in connection with the sale of goods.
The amendments will not only have an impact for businesses selling services abroad but also for businesses buying services from abroad.
The amendments will have the largest economic impact on businesses leasing cars abroad because they will have to settle Danish VAT on the leasing payment. From an administrative perspective the amendments will have an impact on a lot of businesses.
The concept services among other include consultancy, architect work, transportation of goods, assembly work, catering, leasing services and building services. Only a few exceptions apply. The new rules on reverse charge on course,- fair,- and conference services will according to the bill come into force at the end of 2010.
The “VIES-system” is broadened to include services
As of January 1, 2010 cross boarder sales of services must also be reported to the so called list system. At the same time the list period will be shortened from the quarter to the month.
Refund of VAT from other EC countries
There will be major changes in the way businesses may obtain a refund of VAT paid in other EC countries.
- All requests must be forwarded electronically to SKAT, who will take care of the dispatch to the country of repayment.
- Refund is supplied according to Danish rules. If the applicant has got only partial deduction for VAT only partial refund is obtainable.
- The time limit for application is fixed at September 30 in the year following the years where the expense has been defrayed.
- The authorities must as a starting point pay the refund within 4 months unless they need further information.
- Attachments must only be submitted on the authorities request.
Questions to this article can be directed to Hans-Henrik Nilausen at HHN@bdo.dk
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