The tax platform further emphasizes that in assessing whether there is a sale of a building plot, emphasis must be placed on an objective assessment of the parties’ intention in the specific property transfer.
Note that both control signals are in draft. We follow the development closely and will probably keep you updated on this. We are following the consultation phase and the final control signals closely, as we see several challenges in their current form.
Payroll tax exemption for certain teaching activities is potentially extended
In connection with the Ministry of Taxation’s proposed bill, which is desired to enter into force no later than 4 weeks before 1 January 2017, there is a focus on the payroll tax exemption for various teaching activities.
The bill proposes that exemption should also apply to teaching activities at vocational and production schools, universities and others. The aim is to create greater equality in terms of taxation in relation to the teaching activities that are currently exempt. The use of calculate sales tax has been common in these cases.
Of the proposed teaching activities, e.g. mention:
- Teaching in educations covered by the University
- Teaching in educations covered by the Act on Institutions for Vocational
- Teaching in educations covered by the Act on Vocational Academy Education and
- Professional Bachelor’s Education
We are, of course, following up on the bill’s path towards adoption.
News from abroad
Luxembourg plans to introduce a number of sanctions against VAT fraud. The restrictions include fines and criminal liability for non-compliance.
The Polish Minister of Taxation has made a bill to help combat VAT fraud.
Finland raises the VAT registration limit from EUR 25,000 to EUR 30,000 for companies that have to declare once a year, while the limit is raised from EUR 50,000 to EUR 100,000 for companies that have to declare quarterly.
Italy has chosen to delete 60,000 different VAT numbers from the VIES system. This is done as part of the fight against VAT fraud. The covered VAT numbers have previously failed to report to the system’s EU sales without VAT (former listing system).
It seems that educational institutions have deliveries where there is doubt about how the VAT should be handled, exempt or liable for VAT?
- For to avoid VAT not ruining the finances of a project, it is important that VAT is thought through in advance. It can thus be both decisive whether the income is subject to VAT and whether there is a possibility of a VAT deduction from the Danish Tax Agency and / or the VAT compensation.
Although we are aware that the assessment is rarely black and white, we have listed below signs that can guide you in the right VAT direction in case of doubt. In any case, we are ready to help you, and we therefore recommend that you contact us for a specific case-by-case talk.