Denmark Tax Agency Clarifies VAT Reverse-Charge on Supplies of Electricity to Taxable Resellers

The Danish Customs and Tax Administration April 15 posted online Tax Council Binding Answer No. SKM2026.190.SR, clarifying the VAT reverse-charge mechanism on supplies of electricity to taxable resellers. The taxpayer, an electric vehicle (EV) charging infrastructure operator, purchased electricity from its business partners and immediately resold it to end consumers. The taxpayer inquired whether it was considered a VAT-taxable reseller, and whether the reverse-charge mechanism applied to render it liable for VAT on its electricity purchases from business partners. Upon review, the Tax Council found that: 1) when the taxpayer’s charging stations were used, the taxpayer purchased the electricity used ...