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Executive Order Amending Executive Order On The Vat Refund System For Municipalities And Regions

Original Language Title: Bekendtgørelse om ændring af bekendtgørelse om momsrefusionsordning for kommuner og regioner

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Overview (in Contents)

Annex 1

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.

Ministry of Social Affairs, December 11, 2009Karen Ellemann/ Søren H. Thomsen

Annex 1

Positive List

Art account
Function function
VAT and salary price
andels percentage
(Drift: DR1)
(Another: DR3)
Kommuner
5.9
0.32.31
Stadiums, sports facilities and swimming pools
55
85
5.9
0.32.35
Other recreational facilities
50
85
4.01)
3.22.08
Municipal special schools
25 25
85
4.6 4.6
3.22.10
Contribution to state and private schools
25 25
85
5.9
3.22.10
Contribution to state and private schools
25 25
85
4.6 4.6
3.22.12
Schools and Youth Schools
25 25
85
5.9
3.22.12
Schools and Youth Schools
25 25
85
5.9
3.22.18
Sports facilities for children and young
55
85
5.9
3.35.60
Museums
25 25
85
5.9
3.35.63
Music events
10 10
85
5.9
3.35.64
Other cultural tasks
40
85
5.9
3.38.74
Local supplement
65
- - -
4.01)
4.62.82
Municipal rehabilitation and maintenance training
36*
85
4.7 and 4.8
4.62.82
Municipal rehabilitation and maintenance training
18*
- - -
5.2
4.62.85
Municipal dental care
26*
85
4.7 and 4.8
4.62.85
Municipal dental care
18*
- - -
4.01)
4.62.88
Health promotion and prevention
36*
85
4.7 and 4.8
4.62.88
Health promotion and prevention
18*
- - -
4.01)
4.62.89
Municipal health service
36*
85
4.7 and 4.8
4.62.89
Municipal health service
18*
- - -
4.01)
4.62.90
Other health expenses
36*
85
4.7 and 4.8
4.62.90
Other health expenses
18*
- - -
5.9
5.25.19
Deposits to pool schemes, private clubs and private institutions
25 25
- - -
4.01)
5.28.20
Care families and residences etc. for children and young
25 25
- - -
4.01)
5.28.21
Preventive measures for children and young
25 25
- - -
4.01)
5.28.23
Children and young people
25 25
- - -
4.02)
5.32.32
Care and care etc. of elderly and disabled
15
- - -
4.03) 3)
5.32.32
Care and care etc. of elderly and disabled
30*
- - -
4.04)
5.32.32
Care and care etc. of elderly and disabled
25 25
- - -
4.05)
5.32.33
Preventive efforts for elderly and disabled
10 10
- - -
4.01)
5.32.34
Care home and protected housing
55
- - -
5.26)
5.32.35
Supplies, consumer goods, interior decoration and bearing
75 75
- - -
4.01)
5.35.40
Counselling and advisory institutions
40
- - -
4.01)
5.38.42
Offers for people with special social issues
25 25
- - -
4.01)
5.38.44
Alcohol treatment and treatment home for alcohol damage
20
- - -
4.01)
5.38.45
Treatment of drug abuses
20
- - -
4.01)
5.38.50
Long term stay
15
- - -
4.01)
5.38.52
Deals for temporary stay
15
- - -
5.9
5.38.58
Protected employment
25 25
85
5.9
5.38.59
Activity and Cohesion
25 25
85
5.9
5.40
Introduction programmes, etc.
25 25
85
5.9
5.58.80
Qualifying
25 25
85
5.97)
5.68.98
Employment arrangements
25 25
85
5.9
5.72.99
Other social purposes
15
- - -
Regions
4.01)
1.10.01
Hospitals
36*
- - -
4.7 and 4.88)
1.10.01
Hospitals
18*
- - -
4.09)
1.10.01
Hospitals
58*
- - -
4.01)
2.10.01
Social offers, special lessons and advice
25 25
- - -
5.9
3.20.10
Up to cultural activities
40
85

* 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.