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General VAT rules for international clients
Many of our customers at 25HOUR Rental come from outside Denmark. We rent out professional AV equipment and provide skilled crew for film, live events and corporate productions. Because VAT rules vary depending on where you are based and how you use our services, we have created this guide to help you understand why VAT may appear on your invoice, when it applies and how you can reclaim it.
For services supplied by a Danish company to a business outside the EU, the general rule is that the place of supply is where the customer is established. Under this rule, we normally do not charge Danish VAT; you report any tax due in your home country.
Skat.dk
When this applies, you will see the text “reverse charge” on your invoice along with your company’s registration number.
However, there are important exceptions where the place of supply is Denmark and VAT must be charged. This happens when services relate to Danish property, event admission, restaurant and catering services or short‑term rental of vehicles . PWC.dk
The two exceptions most relevant to our rental business are equipment rentals and crew hire.
Equipment rentals – use and enjoyment rule
When you rent AV equipment (cameras, lights, sound systems) from us and use it at an event in Denmark, the service is subject to the use‑and‑enjoyment rule. Even though you are based outside the EU, the place of supply moves to Denmark, and we must add 25 % Danish VAT to the rental. tax.dk pwc.dk
If you take the equipment with you abroad and use it entirely outside Denmark, the general rule applies and we invoice without Danish VAT. You must be able to document that the equipment was exported and used elsewhere if tax authorities ask.
Crew hire – labour supply vs. turnkey services
We offer both crew hire and full event or production services. VAT treatment depends on the type of service:
- Labour supply: When our technicians work under your instruction (https://e.g. camera operators you direct on set), this is considered labour hire. Under the use‑and‑enjoyment rule, if the work takes place in Denmark, we must charge Danish VAT. Tax.dk
- Turnkey services: If we plan, set up and run your AV production or event as a complete package, this is a contracted service. We manage the crew and deliver a finished result. In this case, the general rule applies, and we invoice without Danish VAT .
How to reclaim Danish VAT
Even when VAT appears on your invoice, you may be able to reclaim it:
- Business use only: You must demonstrate that the expense is related to your company’s taxable activities.
- Apply in your home country: Foreign businesses reclaim Danish VAT by submitting a refund application through their local tax authority. This typically requires the original invoices and proof of payment .
- Keep your documents: Ensure invoices are issued correctly; the Danish Tax Agency will reject incomplete invoices. Horesta.dk
Summary – Why and when VAT applies
VAT is normally not charged on services we supply to non‑EU businesses, thanks to the reverse‑charge mechanism. Skat.dk
VAT must be charged when rented equipment or hired crew is used in Denmark, because of the use‑and‑enjoyment rule.
Crew hire vs. full service: Labour hire under your control is taxed in Denmark , while turnkey services delivered by us follow the general rule .
You can reclaim VAT by applying through your home tax authority, provided the purchase relates to your taxable business .
If you have any questions about VAT on your rental or service, our team at 25HOUR Rental is happy to help.
What about EU‑based customers?
For clients located within the EU (for example Amsterdam, Netherlands) the VAT rules differ slightly from those for non‑EU businesses:
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General rule: For B2B services between EU countries, the place of supply is where the customer is established. A Danish supplier does not charge Danish VAT but issues the invoice under the reverse‑charge mechanism. The EU customer accounts for VAT in their own country .
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Use‑and‑enjoyment does not apply: The special rule requiring VAT when a service is used in Denmark applies only to customers outside the EU . EU customers renting equipment or hiring crew for use in Denmark are therefore billed without Danish VAT, even though the equipment or labour is used locally.
- Exceptions: Services relating to immovable property, admission to cultural/sporting events, restaurant and catering services or short‑term hire of transport are always taxed in Denmark . Pure equipment rental and crew hire do not fall under these exceptions.
As a result, an EU company renting gear or personnel from 25HOUR Rental for an event in Denmark will receive an invoice without Danish VAT, and will need to account for VAT in their home country through reverse charge.