A Danish Supreme Court ruling overrules prior rulings in the regional and revenue courts. According to the Supreme Court and the Inland Revenue Department, the company Jet Trade drives illegal business to avoid the Danish VAT.
Jet-Trade is not at liberty to sell jet boats, jet ski and boat trailers in the city of Aarhus - and then have the customers pick up the traded goods in Germany - for the sake of avoiding Danish VAT. Several companies speculate in this loop hole business tactic, profitting on the VAT differences between Germany and Denmark (19 and 25 percent, respectively). Jet-Trade lost their case in a principle ruling in the Danish Supreme court. All nine of nine Supreme Court justices backed the claim made by the Inland Revenue Department.
'Merchants are creative minds, but there are limits as to how creative you can be in the attempt at avoiding Danish VAT,' says Troels Lund Poulsen, Minister for the Inland Revenue Department. He now plans to look further into the rules and regulations of trade across boarders.
Jet-Trade's delivery, cf. the Danish revenue law article § 4. no. 1, 2. paragraph, originally happened to the customer and not to transporter Fleggaard. Since the boat was in Denmark at the time of delivery, when the transport to Germany started, the place of delivery is defined as Denmark, cf. the revenue law article § 14, no. 2, 1. paragraph, and for that reason the VAT was to be paid in Denmark.
For further information, please see:
http://www.domstol.dk/hojesteret/nyheder/Afgorelser/Pages/Momsoggraensehandel.aspx
http://www.skm.dk/presse/pressemeddelelser/ministeren/8201.html
http://en.wikipedia.org/wiki/Value_added_tax
Jet-Trade is not at liberty to sell jet boats, jet ski and boat trailers in the city of Aarhus - and then have the customers pick up the traded goods in Germany - for the sake of avoiding Danish VAT. Several companies speculate in this loop hole business tactic, profitting on the VAT differences between Germany and Denmark (19 and 25 percent, respectively). Jet-Trade lost their case in a principle ruling in the Danish Supreme court. All nine of nine Supreme Court justices backed the claim made by the Inland Revenue Department.
'Merchants are creative minds, but there are limits as to how creative you can be in the attempt at avoiding Danish VAT,' says Troels Lund Poulsen, Minister for the Inland Revenue Department. He now plans to look further into the rules and regulations of trade across boarders.
Jet-Trade's delivery, cf. the Danish revenue law article § 4. no. 1, 2. paragraph, originally happened to the customer and not to transporter Fleggaard. Since the boat was in Denmark at the time of delivery, when the transport to Germany started, the place of delivery is defined as Denmark, cf. the revenue law article § 14, no. 2, 1. paragraph, and for that reason the VAT was to be paid in Denmark.
For further information, please see:
http://www.domstol.dk/hojesteret/nyheder/Afgorelser/Pages/Momsoggraensehandel.aspx
http://www.skm.dk/presse/pressemeddelelser/ministeren/8201.html
http://en.wikipedia.org/wiki/Value_added_tax