The inquirer obtains partial payments at the time when certain specified goods, which the inquirer has sold to the end customer, arrive at a given location in Denmark. The goods will be sent to a specified location outside the EU when technically possible. Unforeseen circumstances have meant that it is not possible for the end customer to receive the goods at the originally agreed time. It has therefore been necessary to store the goods at the specified location in Denmark. Just as it has been necessary to speed up the time of the questioner’s receipt of the partial payments in question to the time of the goods’ arrival at the specified place in Denmark instead of the time of arrival at the agreed delivery place outside the EU. It is a condition of the contract that the ownership of the goods passes to the end customer when the questioner receives the partial payments. But according to what was agreed, the delivery conditions are Delivered at Place. The risk of accidental loss of the goods therefore only passes to the end customer upon arrival at the agreed place of delivery.
The Tax Council could not confirm that the receipt of the partial payments is covered by the VAT exemption for exports at the time of receipt. On the basis of an overall, concrete assessment, the Tax Council found that at this point the buyer has not yet obtained the right to dispose of the goods as owner in terms of VAT. Thus, one of the conditions for using the VAT exemption for exports is not met. The other two conditions according to the EU Court of Justice’s practice for exemption are also not met. As the shipment out of the EU has not started and the goods have not physically left the EU. The Tax Council, on the other hand, agreed with the questioner that the questioner should not collect VAT on receipt of the partial payments. As the VAT obligation has not yet occurred, cf. SKM2015.258.SR .
Source: skat.dk
