The Danish Customs and Tax Administration published Tax Board Binding Answer No. SKM2022.429.SR, which clarified the place of supply requirements for online transactions.
A German-based company distributes energy products. The company’s websites are used to make sales and to provide further information. The company is physically located near the border and mostly targets Danish clients which include both private individuals and businesses. For its sales to Danish private customers, the German firm wanted clarification on the place of supply.
The Tax Council concludes that the company’s mention of potential carriers on its website does not imply that the business must be seen as being indirectly involved in the delivery of products to its customers. Due to this, the company’s sale of energy goods to Danish private customers does not have a place of delivery in Denmark and is therefore exempt from Danish VAT.
Moreover, the Tax Council clarified that if the taxpayer referred private customers to possible carriers by telephone, in this case, the firm would be considered as indirectly involved in the shipment of goods, and distance sale regulations would apply. As a result, the sale of energy items to private Danish consumers would be subject to Danish VAT.
Additionally, the sale of energy products to Danish private customers would be subject to VAT in Denmark if the taxpayer informed the transporter that he is hired by an individual client when picking up the ordered goods.