What types of services are covered?
Services related to loading, unloading, transhipment and the like in the Danish port area will be covered by the new rules. These are typically services such as:
- Ship fees
- Quay/goods taxes
- Soldering
- Towing
- Beliefs and beliefs
- Wharf cleaning, waste management
- Setting up barriers etc.
- Reception of soil, ash and special waste
- Storage capacity rental
Danish ports are therefore not required to charge Danish VAT on these services when they are sold to foreign companies. Instead, the general 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, for example, to the sale of the above services when the following conditions are met:
- it is possible to determine with certainty the purpose of the supply 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 supply chain for the goods or services.
Danish ports should therefore be aware that services provided to a Danish company may be exempt from VAT. If the supplier informs the port that the service is sold on to a ship in international trade, the service can be VAT exempt. The port can also act as a supplier and request the VAT exemption from the subcontractor. Several steps can occur and the service can be exempt from VAT when the above 3 conditions are met.
The service can be supplied VAT-free to any foreign company, including the cargo holder, shipper, freight forwarder, shipping company or shipowner.
There are some exceptions to the general rule, which are discussed below.
Example of VAT-exempt services:
A foreign company A buys services in the form of loading of a ship in international trade from company B. B contacts C, who subsequently carries out 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 cultural, artistic, sporting, scientific events, including trade fairs, etc. and related services
-Restaurant and catering services
-Short-term rental of means of transport