When to put VAT on fees(Taxwatch (Tax news in english))
22-09-2010 07:25
Af
Gert Jessen
Charging fees are common in a long row of situations. Therefore, the question often arises whether a certain fee must be charged with VAT or are VAT exempt.
The General Commissioners of Taxes has in a new ruling taken position to whether a gas company must put VAT on that fee which the company charges its customers using the company’s gas card. The card may be used for payment of fuel and for a number of other deliverances including car wash, bridge toll, ferry tickets and parking.
The General Commissioners of Taxes stated that VAT should not be put on the fee. The decision was based on the grounds that the purpose with the gas card was to provide the customer’s credit with the payment. Therefore, consequently, the fee is payment for the provision of credit and not payment for the fuel etc. which is bought on the card. In this connection it was emphasized that the fee was invoiced separately and independent of the underlying purchase.
The decision is in line with a ruling by the Tax Tribunal. In this decision, it was stated that establishment fees in connection with lending are VAT exempt because they are part of the payment for the loan just as provision of extension with payment is compared with the provision of a VAT exempt loan.
Contrary, if a fee pertain to the goods or the service which the consumer pays for, it is customary to put VAT on the fee. This for instance applies for freight fees and for different types of administration fees. Also supply enterprises fees for reopening of deliverances are VAT liable.
Questions can be addressed to Gert Jessen at gej@bdo.dk
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