Test cases to avoid double taxation

Several EU countries are participating in a EU test case to give businesses the opportunity to obtain advance rulings from several EU countries on the VAT treatment of complex cross-border transactions in the EU through the tax authorities in the country where they are registered for VAT. It is a condition that the transaction(s) planned involve two or more participating EU countries and that they are complex and have a cross-border aspect.

Applicants are requested to give their consent as to the Danish Tax Agency sharing data with the tax authorities of the EU countries concerned. 

EU countries will reply individually unless applicants specifically request a cross-border ruling agreed by several countries.

The ruling provided by the Danish Tax Agency should not be regarded as a binding ruling or decision. The test case has been postponed indefinitely.

Want to request a ruling on EU transactions?

Via email

Please forward your request to: HovedpostkasseJura@SKTST.dk.

Write "VAT CBR" in the subject field. We recommend that you send the request as a secure email (encrypted). If you fail to send your request as a secure email, we cannot guarantee that your email is not read by third parties. Please note that others may be able to read the subject field even if the email is encrypted.

Via letter

Skattestyrelsen JURA
Østbanegade 123
2100 Copenhagen Ø
Denmark

Along with the question(s) to be answered, the request should contain:

• a clear description of the case
• the business’s proposal (if any) for how to solve the issue and the reason for the proposal
• the VAT registration no. of the business (CVR or SE no.)
• business name
• business address
• name of contact person and contact information

The request should be made in English and any other language that might be required in the country in question. The Danish Tax Agency may dismiss the request if the conditions are not met.

Read more about the test case, the countries that participate and which language requirements that apply in the EU guide.

‘VAT Double Taxation - Dialogue between Tax Administrations’ is an EU test case, which has been postponed indefinitely. It sometimes happens that a business pays VAT in one EU country and that another EU country subsequently claims VAT on the same goods or services.

The test case allows businesses to encourage the tax authorities of the two countries to enter into a dialogue to agree on which country is entitled to the VAT. Requests for a cross-border ruling should be made to the unit or case handler treating the business’s VAT affairs, such as a VAT refund. 

A common understanding of the facts of the transaction concerned and of the VAT rules might result in the first country paying back the VAT that has already been paid or that a country gives up its claim.

However, the EU countries concerned may not reach an agreement. For instance, the rules on limitation period or reopening may prevent a country from paying back VAT even if the country agrees that VAT should be paid in another country. Consequently, there are no guarantees that a dialogue will prevent double taxation in a specific case.

The test case should not be confused with VAT Cross Border Rulings (CBR), which is a special test case for planned transactions.

Read more about the test case and which countries participate in the EU guide.