Denmark Tax Agency Clarifies VAT Reverse Charge Payment Obligation for Telecommunication Services

The Danish Customs and Tax Administration Nov. 13 posted online Tax Council Binding Answer No. SKM2023.538.SR, clarifying the VAT reverse charge payment obligation for telecommunication services. The taxpayer, a telecommunication service provider, offered access to digital infrastructure, primarily for resale by other operators and service providers. The taxpayer sought clarification on whether the reverse payment obligation applied to the installation of subscriptions, interconnection services, number porting, renting space on infrastructure, and unsuccessful technician visits. The Tax Council confirmed that: 1) the taxpayer is subject to the reverse payment obligation for telecommunication services when customers resell them; 2) ancillary services, such ...