What types of services are exempt?
Examples of VAT-exempt services:
A foreign company, A, purchases services—specifically, the loading of a ship engaged in international trade—from company B. B contacts C, which subsequently performs the loading. If B informs C that the service is being provided to a ship engaged in international trade, B must provide documentation to that effect, and C may then invoice B without VAT.
The following services are not covered by this general rule:
•Services related to real estate
•Passenger transportation
•Admission to cultural, artistic, sporting, and scientific events, including trade shows, etc., as well as related services
•Restaurant and catering services
•Short-term rental of vehicles
As a general rule, these services are subject to VAT at the place where the service is provided.
If the services relate to real estate, VAT must be paid at the location where the property is situated. If the services relate to a property in Denmark, Danish VAT must therefore be charged on them. This could include, for example, the port’s leasing of land or warehouses to foreign customers.
