What You Must Know about the Changes in Denmark’s Indirect Taxes
The tax authorities of Denmark have proposed reforms to indirect taxes which are likely to take effect in 2013. The draft law which is subject to the Parliament’s approval will also avoid erosion of tax base by providing for indexation of tonnage tax based on inflation and wages.
Proposed Indirect Tax Revisions: Increase in Taxes
- Vehicle road tax and fuel tax;
- Tax on Piped water;
- Health-related taxes (known as ‘fat taxes’ imposed on wine, beer, saturated fat, mineral water, etc.); and
- Various excise duties.
Proposed Indirect Tax Revision: Other Provisions
- To recompense for inflation, majority of indirect taxes would be raised by 1.8% annually till 2020, lone exemption is given to oil excise duties. However, from 2016 onwards, even oil excise duty would be adjusted by the real change in inflation.
- From 2013, the majority of fat taxes i.e. health-related indirect taxes would increase through “discretionary increases” sharply by over 10%.
- The current exemption granted to hydrogen and electric vehicles from the car registration tax and vehicle road tax would be extended till the end of 2015.
- A 52% increase in the special “countervailing charge” would apply to diesel. This is intended to have the following effects:
- It is expected to reduce particle emissions from diesel cars;
- It is also expected to promote drivers into purchasing hydrogen or electric cars;
- However, this provision exempts the heavy and large vehicle like trucks, tractors and buses, as they do not have any option but using diesel.
Keeping abreast of the changes with the help of an expert
Making hurried and uninformed decisions can spell disaster for your business, therefore to ensure smooth progress, it is advisable to seek professional advice. As it is of course no easy task to gain a comprehensive understanding of the laws of another country, the guidance of a professional can always be beneficial. With expert assistance you can get all the necessary help in the various areas of your business like global transfer pricing, eu vat rules, sas compliance, taxation, etc. Seeking counsel from a professional will make certain that you are taking the right steps towards making your international business venture a success.
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