Explore the requirements and rules that apply to electronically supplied services in Denmark.
For B2B; Is a non-resident vendor, without permanent establishment, selling cross-border electronically supplied services to a B2B customer located in your jurisdiction required to register for and charge VAT/GST?
No, reverse charge applies
For B2C; Is a non-resident vendor, without permanent establishment, selling cross-border electronically supplied services to a B2C customer located in your jurisdiction required to register for and charge VAT/GST?
“Yes” under the normal regulation and “no” under the Mini One Stop Shop regulation if chosen.
If there is not a requirement to register B2B , is there either
None of the listed
If there is not a requirement to register B2C, is there either
It is optional, one can apply the MOSS scheme
Non- EU Suppliers: If your country requires non-resident sellers of e-services to register for VAT/GST, when did/will those rules come into effect?
EU Suppliers; If your country requires non-resident sellers of e-services to register for VAT/GST, when did/will those rules come into effect?
Where the services are supplied through an interface or a portal such as a marketplace for applications (e.g. Google Play or the App Store), is the originator of the content or the interface/portal responsible for registering for and remitting the VAT/GST on those services?
Ultimately both but as a starting point the interface/portal
What is the applicable registration threshold, in local currency, for electronically supplied services by a non-resident vendor (if any)?
If there is a registration threshold, what is the periodical limit (e.g. annual, quarterly, monthly etc.)?
If registration is required, is it a simplified registration (collection of output tax only), or a standard registration (collection, input tax credits, etc.)?
Non-resident vendors have the option to register either in each EU Member State where B2C sales are made, in which case the registration would be standard, or register under the Mini One Stop Shop (MOSS) an EU wide simplified registration (collection only)
Is a non-resident vendor, registered for VAT/GST purposes because of cross border sales of services, required to issue a VAT/GST compliant invoice? (complying with the VAT/GST invoicing requirements in the country of consumption, rather than supplier’s country)
Where an EU supplier is already registered for VAT purposes in your jurisdiction, but has no establishment (e.g., distance sales), should electronic supplied services provided to a customer in your jurisdiction be reported in your domestic VAT return or the MOSS return where the supplier is established
The MOSS return
Does the requirement to register apply only to B2C transactions, or to both B2C and B2B transactions?
B2C and B2B
It is registration under One Stop Shop – otherwise both. B2B and B2C (normal regulation) or B2C (One Stop Shop)
Do the requirements apply to all services provided electronically?
Do the requirements apply to digital streaming of content (audio, image, video) ?
Do the requirements apply to digitally supplied software and apps,
Do the requirements apply to cloud storage?
Do the requirements apply to internet based voice communication services e.g. VoIP?
Do the requirements apply to telecom services?
Do the requirements apply to digital streaming of content?
Do the requirements apply to broadcasting services?
Do the requirements apply to any services NOT mentioned in the previous sections? If so which ones?
All electronic services within the wording, preparatory works, ECJ judgments, etc.
All the answers are under the assumption that registration and charge of VAT is done under the Mini One Stop Shop scheme.
Rasmus Smith Nielsen
T +45 5077 0926