Anti-VAT fraud measure from January 2024
Denmark is to be the latest EU member state to introduce the domestic reverse charge on business-to-business supplies of telephony services. The anti-VAT fraud measure will come into effect from 1 January 2024.
The measure applies to B2B wholesale transactions, and only between Danish established entities. The reverse charge obliges the customer to report the sales VAT, and therefore the supplier does not have to charge or collect VAT. The cash payment for VAT is therefore eliminated and so any opportunity for VAT fraud.
Denmark is applying this mechanism in accordance with Article 199 of the EU VAT Directive on specific supplies of goods and services as a Quick Reaction Mechanism (‘QRM’) measure to combat sudden and massive fraud liable to lead to considerable and irreparable financial losses. See what EU states reverse charge rules have been applied.
Service included are:
- Fixed line
- Mobile voice, data and video
- Internet access
- Call handling services
EU VAT General and Domestic Reverse Charge rule by country
| Country | General RC (art 194) | Domestic Reverse Charge (art 199) | ||||||
| Domestic goods * | Immoveable Property | Installation | Construction | Scrap metal | Mobile Phones | Gas & electricity | Carbon Trading | |
| Austria | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Belgium | Yes | Yes | Yes | Yes | - | - | Yes | Yes |
| Bulgaria | - | - | Yes | - | Yes | - | Yes | - |
| Croatia | Yes | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Cyprus | - | - | Yes | Yes | Yes | Yes | Yes | - |
| Czech Republic | Yes | - | Yes | Yes | Yes | Yes | Yes | Yes |
| Denmark | - | - | Yes | - | Yes | Yes | Yes | Yes |
| Estonia | Yes | Yes | Yes | - | Yes | - | Yes | - |
| Finland | Yes | - | Yes | Yes | Yes | - | Yes | Yes |
| France | Yes | - | Yes | Yes | Yes | - | Yes | Yes |
| Germany | - | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Greece | Yes | - | - | - | Yes | Yes | Yes | Yes |
| Hungary | - | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Ireland | - | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Italy | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Latvia | - | - | Yes | Yes | Yes | Yes | Yes | - |
| Lithuania | Yes | - | Yes | Yes | Yes | - | Yes | - |
| Luxembourg | - | - | - | - | - | Yes | Yes | Yes |
| Malta | Yes | - | Yes | Yes | - | - | Yes | - |
| Netherlands | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Poland | Yes | - | Yes | Yes | - | - | Yes | Yes |
| Portugal | Yes | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Romania | Yes | Yes | Yes | - | Yes | Yes | Yes | Yes |
| Slovakia | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Slovenia | Yes | Yes | Yes | Yes | Yes | - | Yes | Yes |
| Spain | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Sweden | Yes | - | Yes | Yes | Yes | Yes | Yes | Yes |
| Non-EU | ||||||||
| Norway | - | - | - | - | - | - | - | - |
| Switzerland | Yes | - | Yes | - | - | - | Yes | - |
| UK | - | - | Yes | - | - | Yes | Yes | Yes |
| * Further local rules on the VAT status of the supplier and their customer need to be considered to determine if RC applies | ||||||||
