With the control signal SKM2021.321.SKTST , the Danish Tax Agency changed its practice as a result of the European Court of Justice’s judgment of 29 June 2017 in case C-288/16, LC. 1, no. 16, that transport services and related transactions are provided to the sender or recipient of goods which are exported to places outside the EU. Subcontracting services will in future not be covered by the VAT exemption.
SKM2021.321.SKTST took effect from 22 December 2021. The new control signal changes the effective date of SKM2021.321.SKTST to 1 July 2022.
Background for modification of SKM2021.321.SKTST
With the control signal SKM2021.321.SKTST , the Danish Tax Agency changed its practice following the European Court of Justice’s judgment of 29 June 2017 in case C-288/16, LC The case concerned VAT exemption for the provision of transport services for goods exported to places outside the EU . The ruling entailed a tightening of Danish practice. In future, it became a condition for VAT exemption pursuant to section 34 (1) of the VAT Act. 1, no. 16, that transport services and related transactions are provided to the sender or recipient of goods which are exported to places outside the EU. Subcontracting services will in future not be covered by the VAT exemption.
SKM2021.321.SKTST takes effect from December 22, 2021.
A number of other countries have either or are implementing similar changes in practice in continuation of the judgment in case C-288/16, LC, and the VAT Committee’s guideline WP 980, cf. 4 in SKM2021.321.SKTST .
The different implementation times create challenges for the transport industry in connection with IT systems to be used in a number of different European countries. At the same time, the transport industry has had to deal with a number of other challenges, such as Brexit, which is also important for business processes and IT systems.
Modification of the effective date of SKM2021.321.SKTST
The Danish Tax Agency finds that the transport industry is in a particularly difficult situation in connection with the implementation of the change in practice as a result of the judgment in C-288/16, LC In this special situation, the Danish Tax Agency has therefore found it reasonable to change the effective date of SKM2021.321.SKTST . The effective date of SKM2021.321.SKTST is therefore changed to 1 July 2022 by this control signal.
3. Validity
The control signal will be incorporated in the Legal Guide 2022-1.
The control signal only changes the effective time for SKM2021.321.SKTST , cf. 7 in SKM2021.321.SKTST . SKM2021.321.SKTST is incorporated in the Legal Guide 2021-2 and would lapse on 22 December 2021. As a result of this control signal, both control signals will lapse on 1 July 2022.
Source: skat.dk
