The report concerns the Danish Ministry of Taxation’s effort to ensure that Danish businesses report correct VAT, when they trade with VAT-registered businesses in other countries in the European Union (EU).
The purpose of the study is to assess whether the effort made by the Ministry of Taxation to ensure that businesses report correct VAT on EU trade is sufficient. The report answers the following questions:
- Has the Tax Agency, to a sufficient extent, identified the level of risk associated with VAT on EU trade?
- Has the Tax Agency made a sufficient effort to establish structural solutions that support correct reporting of EU trade?
- Is the Tax Agency maintaining an adequate level of ex-post control of EU trade?
It is Rigsrevisionen’s assessment that the Ministry of Taxation’s effort to ensure that businesses report correct VAT on EU trade is worthy of criticism. The consequence is a risk of very large VAT revenue losses in Denmark and in the other EU member states.
Rigsrevisionen initiated the study in January 2021.
Read the introduction and conclusion (PDF)