June 20, 2016

The Danish Tax Authorities are closely following the footsteps of the German Tax Authorities

Several U.S. companies doing business within Germany have indicated that they have been contacted by the German tax authorities, and now the Danish tax authorities are doing the same. Since January 1 of this year the Danish tax authorities have the authority to access information from banks and credit card companies in order to trace any non-Danish vendor that sells goods and services online to private people within Denmark. These companies are often unaware that they might be required to register for VAT and charge VAT to the private customers. The call from the Danish tax authorities might come as an unpleasant surprise since they demand that the company declares and pays in the VAT due from sales to Denmark. If this is not done per Danish law, the North American company can expect back taxes and penalties. To find out if your company is required to register and charge VAT within the EU, please contact our VAT experts.


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