Denmark Tax Agency Clarifies VAT Obligations for Electronic Financial Institutions Providing Payment Services

The Danish Customs and Tax Administration June 26 posted Tax Council Binding Answer No. SKM2025.358.SR, clarifying VAT obligations for electronic financial institutions providing payment services. The taxpayer, an EU-based electronic financial institution, provided payment services through a mobile application. The taxpayer licensed a third party to install an application programing interface (API) integration software that allowed its business customers to advertise goods and services in the application to the taxpayer’s private customers. The taxpayer sought clarification on its VAT obligations for selling specific goods and services advertised in the application, as well as a marketing license for the application. The ...