- The case concerns the owner of digital signs, and an intermediary who, in its own name, facilitates advertising space on these digital signs via a platform. The intermediary is not established or VAT registered in Denmark.
- Advertisers can participate in an auction for the advertising space on the platform. Auction winners upload their advertising material via the platform to the digital signs, which then display the material.
- The Tax Council determined that the facilitated services should be considered electronically delivered services. These services could also be considered advertising services.
- Since they are considered advertising services, they should not be regarded as services related to real estate, regardless of whether the digital signs are considered real estate.
- According to established practice, the rules for the place of supply for electronically delivered services take precedence over those for advertising services when a service can fall under both sets of rules.
- Therefore, the facilitated services (provision of advertising space) are considered electronically delivered services.
- The place of supply (taxation location) for the intermediary’s purchase of advertising space is in the third country where the intermediary is established.
- Consequently, no VAT is payable in Denmark, even though the digital signs are located in Denmark.
Source: info.skat.dk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
