The Tax Council confirmed that a foreign company was not liable to pay VAT on the supply of services to its foreign customer in connection with the establishment of a pallet transport system in a warehouse in Denmark. Since the services were subject to VAT and the company had established the seat of its economic activity in Germany and did not have a fixed establishment in this country from which the services were supplied, it was the company’s customer who was liable to pay VAT. The Tax Court could not confirm that the place of supply was in Germany for the above services covered by Article 16(1) of the VAT Act, as the company had neither established its business in Germany nor a fixed establishment to which the services were supplied.
Source Retsinformation (in Danish)
