What types of services are covered?
Services related to loading, unloading, transshipment and the like in the Danish port area will be covered by the new rules. These are typically services such as:
- Ship dues
- Berth/goods charges
- Soldering
- Towing
- Faith leadership
- Quay cleaning, waste management
- Setting up barriers etc.
- Receiving soil, ash and special waste
- Storage capacity rental
Therefore, Danish ports do not have to charge Danish VAT on these services when they are sold to foreign companies. Instead, the main rule is that VAT must be paid in the buyer's home country.
In some situations, goods and services can be exempt from VAT, even if they are not sold directly to foreign companies. This applies, among other things, to the sale of the above services when the following conditions are met:
- it is possible to determine with certainty the purpose of the delivery of the goods or services because this has been agreed,
- there is no need to introduce a specific control system to ensure the correct and simple application of the exemption; and
- the supply is part of the chain of commerce for the goods or services.
Danish ports should therefore be aware that services provided to a Danish company can be exempt from VAT. If the supplier informs the port that the service is sold on to a ship in foreign trade, the service can be VAT exempt. The port can also act as a supplier and request the VAT exemption from the subcontractor. There may be several stages, and the service can be exempt from VAT when the above 3 conditions are met.
The service can be provided VAT-free to all foreign companies, including the cargo holder, shipper, freight forwarder, shipping company or shipowner.
There are certain exceptions to the general rule, which are discussed below.
Example of VAT exempt services:
A foreign company A purchases services in the form of loading a ship in international trade from company B. B contacts C, who subsequently handles the loading. If B informs C that the service is delivered to a ship in international trade, B must provide documentation and then C can invoice B without VAT.
What types of services are exempt?
The following services are not covered by this starting point:
-Real estate services
-Passenger transport
-Admission to events related to culture, art, sports, science, including fairs etc. and related services
-Restaurant and catering services
-Short-term rental of means of transport
