Denmark Tax Agency Clarifies VAT Rules for Drop Shipments From Outside EU

The Danish Tax Council June 3 posted online Tax Council Binding Answer No. SKM2026.263.SR, clarifying VAT rules for drop shipments from outside the EU. The taxpayer, a company, provided fulfillment services to clients who sold goods to EU customers, dropped shipped from outside the EU without using storage or distribution facilities in the EU. The clients didn’t use the distance selling import regime. The taxpayer inquired as to VAT treatment. Upon review, the Tax Council found that: 1) when parties agree that goods will be delivered duty unpaid (DDU), or delivered at place (DAP) at a named destination with the ...