Denmark imposes new obligations on intra-community transactions Aug 2013

The Danish tax authorities are imposing stricter documentation requirements on Danish VAT registered businesses that make cash sales to businesses from other EU countries.

Where a sale is made to a VAT registered company from another EU member state, it is treated as an intra-community supply, and therefore VAT exempt.  However, this has given rise to much VAT fraud as purchasers have unlawfully avoided the payment of VAT.

From 1 August 2013, Danish vendors, selling for cash, must seek the following from any non-Danishbusiness in order to qualify for zero VAT:

• A declaration from the acquirer that the goods will leave Denmark
• Details of the means of transport, including vehicle registration records
• Any supporting proof of transport documents, such as ferry tickets
• For cash sales, copies of passports or driving license of the purchasers
• If the Danish vendor cannot secure the above prior to the sale, it should levy Danish VAT.

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