Press Release: VAT – Commission pursues infringement proceedings against Denmark regarding VAT exemptions

The European Commission formally requested on 28 January 2010 Denmark to change its law regarding the application of certain exemptions under the VAT Directive. Under Danish law, an exemption from VAT is given to charitable and non-profit making associations' supplies, as well as to goods supplied by second-hand shops. The Commission considers such exemptions to go beyond what is allowed under the VAT Directive. The request takes the form of a reasoned opinion (second step of the infringement procedure provided for in article 258 of the Treaty on the Functioning of the EU). If the relevant national legislation is not amended in order to comply with the reasoned opinion within two month, the Commission may decide to refer the matter to the European Court of Justice.