The Danish government has commenced a consultation on a draft legislation that includes amendments to the VAT Act and other related changes. A key amendment is the introduction of VAT zero-rating for domestic air travel services in Denmark.
The initiative seeks to create a level playing field for airlines operating within Denmark, ensuring fair competition whether they operate domestic or international flights.
Additionally, the proposed legislation includes amendments related to the EU small business scheme for cross-border supplies, initially implemented in Denmark through Law No. 332 on 9 April 2024.
This allows a taxable person established in another EU Member State to apply the small business scheme (VAT exemption) in Denmark if their annual turnover in Denmark does not exceed DKK 50,000 and their total annual turnover within the EU does not exceed EUR 100,000.
The proposed legislation repeals and reintroduces the provisions of Law No. 332 for the scheme, with amendments to clarify the application of the new rules. If approved, the legislation will take effect on 1 January 2025. The deadline for submitting comments is 23 September 2024.
