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Denmark reverse charge on telecoms and other fraud measures

EU VAT Directive Art 194 domestic reverse charge to combat fraud

Denmark’s Tax Administration has made a range of changes to its VAT laws to tackle VAT fraud. These include:

  • Imposition of domestic reverse charge for wholesale sales of telecommunications services to tackle carousel fraud. This eliminates the cash payment of the VAT element of such transactions which often is subject to non-disclosure or remittance by fraudsters.
  • Denmark has approved the measures for registration and reporting of transactions facilitated by payment service providers. This applies from 1 January 2024.
  • All VAT-registered businesses will be required to declare once a year whether they have VAT-exempt activities which result in a partial right to deduct, and, if so, indicate the amount of the provisional partial deduction rate and the financial year on the basis of which the deductible percentage was calculated.
  • Prohibiting the extension of vehicle leases entered into prior to tax periods starting on Dec. 17, 2020, to allow for the correct calculation of vehicle registration tax


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