From 1 January 2015 the Danish authorities will allow companies 100% input VAT recovery on hotel accommodation costs.
This applies uniformly to resident and non-resident companies as previously only 75% was allowed.
In 2014, Denmark made a similar change when it increased the percentage of input VAT recovery for restaurant VAT to 75% (previously 50%).
As of 1 July 2014, Denmark implemented an extended reverse charge for domestic supplies of consumer electronic goods:
- mobile devices;
- laptops
- computers
- games consoles
The reverse charge only applies to business that do not ‘mainly or exclusively sell to private individuals’.
The definition of ‘mainly or exclusively’ is simply defined as more than 50% of total sales.
These changes will bring their own problems: firstly, making sure that accounting or not accounting for VAT is done correctly; and, secondly, as there is no definitive list a business will need to see if their product falls within this reverse charge regime.