Key Benefits:
Report on VAT refund scheme for municipalities and regions
§ 1
1492 of 14 December 2006 on VAT refund scheme for municipalities and regions shall be amended:
1. Annex 1 is replaced by Annex 1 to this notice.
Section 2
The decision shall enter into force on 1 January 2010.
Annex 1
Positive List
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* The rate of VAT contains a paysum share rate.
1) Only for registrations on ownership code 4 private.
2) Only for registrations on grouping 009 Private suppliers of personal and practical help.
3) 3) Only for registrations on grouping 004 home sickness, ownership code 4 private.
4) Applies only for registrations on grouping 012 and 013
5) Only for registrations on grouping 003 redemption, relief and help etc. to the elderly and to persons with significantly reduced function ability, ownership code 4 private.
6) Do not apply to motor vehicles.
7) Only for postages in the arts account 5.9, grouping 018 Taxes in Danish as a second language for activated cash assistance recipients and start assistance recipients.
8) Do not apply to high- specialized treatment (land and country participants).
9) Only for services purchased at Statens Serum Institut.
Calculation of VAT and pay rates:
For each function on the positive list, a VAT share rate reflects how large a proportion of the cost of the performance taxed. Similarly, for those with * marked relevant services, a paysum share rate reflects how large a proportion of the total cost of the performance paid. The paysum share rate is subsequently resuitable for the VAT share rate by multiplying the paysum share rate with (3.08/103,08)/(25/125), as private suppliers, in the relevant areas, pays a paysum tax of 3.08 per cent of the paysumer or deficit. After this, the amount of pay-sumer shares and the VAT share rates are divided into one VAT and pay-sumer percentage. Fx is the paysum share rate for hospitals 70 per cent, giving a VAT and paysum share rate of 11 (70*(3,08/103,08)/(25/125)=10.5).
Example of the amount for reimbursement for municipalities:
grants of DKK 1,000 (function 0.32.31 Stadium, sports facilities and swimming pools, art 5.9).
Amount: €50 x 55% x 25/125=110 kr.
The following is recorded in the municipal budget and accounting system:
– – The expense, excluding the calculated VAT expenses, i.e. DKK 1,000 - DKK 110 = 890 kr. is registered on function 0.32.31 stadium, sports facilities and swimming pools, art 5.9.
– – The calculated VAT expenses, i.e. DKK 110 are registered on function 7.65.87, grouping 003.
– – The VAT refund, i.e. 110 kr. is registered on function 7.65.87, grouping 002.
Example of the amount for reimbursement for regions:
grants of DKK 1,000 (function 1.10.01 Sygehuse, art 4.0).
Amount of refunds: €60.00 x 36% x 25/125=72 kr.
The following is recorded in the budget and accounting system for regions:
– – The expense, excluding the calculated VAT expenses, i.e. DKK 1,000 – DKK 72 kr. = DKK 928 registered on function 1.10.01 Sygehuse, art 4.0.
– – The calculated VAT allowance, i.e. 72 kr. is registered on function 5.80.95, grouping 003.
– – The VAT refund, i.e. 72 kr. is registered on function 5.80.95, grouping 002.