Denmark Tax Agency Explains PE, VAT Place of Delivery Rules for Employee Home Office

The Danish Customs and Tax Administration Nov. 26 posted online Tax board Binding Answer No. SKM2020.473.SR, clarifying that an employee’s home office didn’t constitute a permanent establishment (PE) in Denmark for a nonresident company. The employee relocated to Denmark for personal reasons and doesn’t perform sales or corporate management responsibilities. The company requested clarification on its PE status in Denmark and the place of delivery of the employee’s services for VAT purposes. The board held that no PE exists under the OECD model convention because: 1) the company doesn’t have a business interest nor gain a business advantage from the ...