Country-specific: Denmark

The Danish government has proposed to make a number of adjustments in the VAT Act to ensure compliance with the rules EU law and ease the administrative burden for Danish companies and consumers.

The purpose of the bill is to ensure that Danish law is in in accordance with the underlying EU rules.

First of all it  is proposed to change the VAT exemption for authorship and artistic activity and make an adjustment to the VAT exemption for tuition.

In addition, it is proposed to facilitate the administrative burdens in the calculation of VAT for companies applying the special scheme for the sale of second-hand goods, works of art, collectors' items and antiques. The proposal will expand the so-called collective scheme, according to which companies can calculate their VAT liability per. tax period instead of per. sales. The assembly scheme can today be used in cases where the price of the individual items cannot be identified (e.g. when buying estates, where all contents are bought at one total price). The simplification will include all sales except the sale of used vehicles, where special rules apply.

Further it is proposed that the requirement of collateral for VAT on temporary imports from the Faroe Islands and Greenland is waived.

Finally, the proposal contains an amendment to the rules on VAT rebates for diplomats and others, adjustments of the VAT rules on tourist sales at specially approved airports.

The bill is expected to enter into force on June 30, 2022 if adopted.