New VAT reporting obligation effective from 1 June 2024 for businesses in Denmark with both taxable and VAT exempt activities. Businesses must report their partial deduction rate annually through the e-Tax filing system.
Implementation dates vary by VAT settlement period. Only businesses with both VAT liable and exempt supplies are affected. Fully taxable or fully exempt businesses are not impacted. Partial deduction rate may be rounded up to 100%, but reporting is still required.
VAT exempt activities include:
- Hospital treatment and healthcare services
- Social welfare and assistance
- Education
- Cultural activities
- Sale and rental of real estate
- Financial activities
- Transportation of individuals
Source: taxathand.com
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.
