- Denmark will implement new regulations on local reverse charge VAT for wholesale supply of telecommunications services starting January 1, 2024.
- The regulations apply to various telecommunications services, including internet-based telephone services, paging services, and internet access services.
- The local reverse charge will be applicable when the primary intent of purchasing telecommunications services is for resale with minimal personal usage by the buyer.
- Businesses dealing in telecommunications services to another business must confirm if the buyer is a reseller, and the reverse charge procedure would apply in such cases.
- The regulations are limited to transactions between Danish entities that are both locally based and VAT-registered and universally applicable in situations where telecommunications services are resold and the buyer’s usage of these services is minimal, including internal transactions within a corporate group.
Source Taxually
