Policy for Fiscal Host
Policy for purchases:
If the Fiscal Host in Denmark engages in the following market activities, then;
Guest House Rent, Utilities, Waste and sanitation, Water, Electricity, Internet, and Phone bills are all deductible costs; if VAT is charged on these invoices, they are deductible.
Any representation expenses(Hotel stay) are 100% deductible, and any associated travel arrangements, such as flights and restaurants(both in DK and outside), are 25% deductible, and if VAT is charged, accordingly, i.e. 100% VAT on hotels and 25% of the VAT on entertainment expenses.
Any digital service purchased from outside DK must undergo reverse charge obligation. This VAT must be paid and is deductible since it is used in company operations.
Any goods purchased from outside DK must undergo reverse charge obligation. This VAT must be paid but is also deductible since it is used in company ops.
Meals ordered back to the Company Guest House for Board meetings are 100% deductible.
Guidelines by SKAT:
rent (if VAT has been added to the invoice)
purchase of and expenses for repair and maintenance of operating equipment, e.g. machinery, tools, fittings and furniture in factory, shop or office, fishing vessels
workwear and uniforms belonging to the business and which the staff wear at work
mobile phones if the phone can be regarded as operating equipment in relation to the business’s sale of goods and services subject to VAT
magazines, trade journals, technical literature, staff and customer magazines, including periodicals. Weekly magazines and periodicals provided by the business as part of its customer service
flowers for decorating restaurants and hair salons, among other things
heating, electricity, gas and water for the business
advertising items and printed advertising material
cleaning
safety equipment
telephone (landline)
office supplies
accounting services
Businesses registered for VAT may deduct 100% of the VAT on hotel expenses and 25% of the VAT on restaurant expenses.
100% VAT on meals (for example, coffee and cake or lunch) in connection with meetings if the meetings are strictly business-related.
This may, for example, be in connection with:
meetings with business associates
board meetings
in-house meetings with professional content, including theme days
in-house course activities
Specific, unannounced overtime
As a general rule, you are not entitled to VAT deductions for expenses relating to staff meals, etc. However, you may deduct VAT in case of specific, unannounced overtime.
Specific and unannounced means that the work may not be planned in advance, nor may it be customary for the employee to work overtime. For example, no deduction will be granted for farm workers’ overtime during the harvesting season as this is regarded as regular overtime. Therefore, A deduction will only be granted for overtime, announced immediately before the end of the regular working hours.
Social events
Expenses incurred by the business in connection with social staff events are not deductible. This applies, for example, to Christmas parties, staff parties, anniversary events and similar events.
Services exclusive of Danish VAT
do not have to calculate and pay Danish VAT if you purchase the following services abroad:
services related to property not located in Denmark, including hotel stays in other EU countries
passenger transport
tickets to cultural, arts, sports, scientific, training and entertainment events, and so on.
services provided by restaurants or catering businesses
short-term hiring of means of transport
do not have to pay Danish VAT if you purchase the following services abroad and primarily use the service outside the EU:
sale of rights
advertising
consultancy services
negative obligation (non-competition clauses, etc.)
banking, financing and insurance activities, except for hiring of safe-deposit boxes
hiring of labour
hiring of movable tangible property
transport and transmission of gas, electricity, heat and cold
non-EUPolicy for Royalty Journal(categorized as EU sales, non EU sales and local sales)
VAT exempt
25% VAT activities
0% VAT activities
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