On 1 October 2019, the Danish government presented the finance law proposal to parliament that will implement changes into VAT law. These are the simplifications to the cross-border supply of goods within the EU, also known as the four ‘Quick Fixes’. In Denmark, the Four ‘Quick Fixes’ come into effect in January 2020.

The ‘Quick Fixes’ aim to provide clarity and guidance on the correct VAT treatment on EU supplies of goods. They include the following:

  • Harmonisation on the VAT treatment of chain transactions in the EU;
  • Tightening of the requirements for zero-rated intra-EU supplies of goods;
  • Simplification for cross-border consignment stock cases in the EU; in addition to
  • Standardisation of documentary proof in the case of zero-rated intra-EU supplies of goods

This new bill follows other Member States in implementing the European Commission’s 2018 Directive. This is in regards to the harmonisation and simplification of certain rules in the VAT system for the taxation of trade between Member States.

Low Value Consignment Relief

In January 2020, a proposal to implement EU rules on cross-border trade in goods and services will also be submitted. The proposal covers issues including abolishing low value consignment relief on the import of goods with a value below DKK 80.

As mentioned previously – in Denmark, the Four ‘Quick Fixes’ come into effect in January 2020. If you’re affected by any of the changes above, please contact one of our VAT experts for further information.

By |November 23rd, 2019|