If this threshold is not exceeded, the supply is subject to VAT according to the rules of the supplier’s country. The supplier may, however, opt for VAT registration in Denmark before the threshold is exceeded and charge Danish VAT on the sales to Danish customers. Special rules apply to goods subject to excise duties.
Is Denmark part of the EU for VAT?
Denmark, along with other members of the EU, implements its VAT rules based on the European VAT Directive. This sets the framework for Danish VAT registrations, returns, compliance, Intrastat and related declarations.
Do I need to charge VAT to European customers?
If you’re in the UK and the place of supply of your service is in an EU country, you do not pay UK VAT. But for some supplies, you may need to register and account for VAT in the country of supply. You must check with the tax authority in that country to find out how to treat the services you’re supplying.
Is VAT charged on sales to EU countries?
For EU-based companies, VAT is chargeable on most sales and purchases of goods within the EU. In such cases, VAT is charged and due in the EU country where the goods are consumed by the final consumer. … VAT isn’t charged on exports of goods to countries outside the EU.
Do you charge VAT to European customers after Brexit?
After Brexit, businesses based in Great Britain (England, Scotland, and Wales) can no longer apply the reverse charge to EU sales. … If your business is based in Great Britain, and you sell goods to EU businesses, you will not apply VAT to your invoices.
Do I have to charge VAT on goods to overseas customers?
Overview. If you sell, send or transfer goods out of the UK you do not normally need to charge VAT on them. You can zero rate most exports from: Great Britain to any destination outside the UK.
Do I have to charge VAT to overseas customers for services?
The general B2B rule would mean that no UK VAT is charged on the fee (the place of supply being America); however, the use and enjoyment rules for the hiring of goods means that the place of supply is the UK where he is using the camera. He must therefore be charged 20% UK VAT.
Is VAT payable on services provided overseas?
The amount payable to your overseas supplier for the services excludes UK VAT. The value of the transaction on which VAT must be added under the reverse charge is the total amount paid together with the value of any other form of consideration.
Which countries are in the EU for VAT?
The EU countries with the highest standard VAT rates are Hungary (27 percent), and Croatia, Denmark, and Sweden (all at 25 percent). Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent), and Cyprus, Germany, and Romania (all at 19 percent).
Do businesses pay VAT on purchases?
While VAT registered businesses charge their customers VAT on the products and services they sell, they also pay VAT on the products and services they buy, such as raw materials, professional services or stock.
Do overseas sales count towards VAT threshold?
The place of supply is outside the UK and the sale will not count towards your taxable turnover for VAT registration purposes.
How much is VAT in EU countries?
The EU sets the broad VAT rules through European VAT Directives, and has set the minimum standard VAT rate at 15%. The 27 member states (plus UK) are otherwise free to set their standard VAT rates. The EU also permits a maximum of two reduced rates, the lowest of which must be 5% or above.
Do I charge VAT to US customers?
The majority of goods exported to the US can be zero-rated for VAT. In other words, you don’t need to charge VAT on the exported goods or the extra charges such as shipping and delivery. … Therefore, if you do several exports to the US, it may be beneficial to not be on the Flat Rate Scheme.
Does VAT reverse charge apply after Brexit?
The reverse charge is a VAT procedure for cross border sales between VAT registered businesses. It only applies to countries within the EU single market, so Norway, Iceland, and Liechtenstein are excluded. After Brexit, Great Britain is also now excluded.