Denmark confirms VAT exemption requirements on intra-community Ex Works

Mon 15th Dec 2014

The Danish VAT authorities have confirmed the documentation and procedures for Ex Works supplies to another EU member state to qualify for nil VAT status.

Ex Works delivery terms

Ex Works is a trade term whereby the customer takes full responsibility for the pick-up and transport of goods from the supplier’s site. In the case of nil-rated intra-community supplies, the VAT authorities place documentary requirement on the seller to prove that the goods (now not under its supervision) did indeed leave the country.

Proof of intra-community dispatch

The vendor must obtain the following documentation before they may treat the supply as an intra-community dispatch (supply):

  • Customer confirmation that the goods have left Denmark
  • Details of the final destination, and confirmation of their receipt
  • Details of transportation, including vehicle registration plates and driver’s identification documents
  • A power of attorney where the goods are collected by a third party for the buyer
  • Copies of any supporting ferry or rail transport used
  • If possible, but not obligatory, copies of the customer’s VAT return showing the use of the reverse charge and accounting for the output VAT
  • Proof that the customer has a valid EU VAT number, as verified through the VIES portal

The above documentation must be collected within three months of the dispatch. These new arrangements come into place on 1 January 2015.