Denmark imposes new obligations on intra-community transactions Aug 2013
- Apr 18, 2013 | Richard Asquith
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.