Input VAT
When DTU makes purchases, special rules apply to the handling of input VAT. Here you can read about when you may deduct VAT and when you may not.
Input VAT covers all situations in which DTU purchases goods or services.
The rules of the VAT Act must be followed for all purchases of goods and services at DTU.
Every time you receive an invoice, you must determine which expense type to use, as VAT codes are linked to specific expense types. If there is uncertainty between using two expense types that treat VAT the same way (for example, full deduction for the Danish Tax Agency), then it makes no difference for VAT purposes which expense type you choose.
All expense types that do not allow for a full VAT deduction have the applicable deduction described in parentheses. No VAT deduction is thus indicated as (0 VAT).
Below, you can read how purchase VAT is handled in practice - both with and without a VAT deduction.
If the expense type is correct, the VAT calculation will be performed automatically, and the VAT amount will appear on a separate line.
If you use one of the expense types with limited deduction, for example: (0 VAT), the VAT will not be deducted from the amount, and DTU will effectively overpay for the goods/services.
If you receive an invoice excluding VAT, you must verify that the VAT exemption is correct. For example, the sender may be exempt from VAT under the VAT Act, or the delivery may fall under the exemptions in the VAT Act, or the rules for reverse charge may have been applied (B2B trade in mobile phones, laptops, or integrated circuits). In these cases, VAT may not be deducted, and the total amount of the invoice must therefore be posted to the expense account to which it belongs by category.
In B2B trade involving mobile phones, laptops, and integrated circuits, it is the seller's responsibility to determine whether they primarily trade with other businesses and are thus subject to the reverse charge rules. If they are covered, they must issue an invoice without VAT, and it must be clearly stated that the invoice is subject to the reverse charge mechanism via a note or similar. In that case, the following expense type must be used:
- 226012
If you receive an invoice without VAT and you use an expense type that calculates full VAT, we will withhold the amount in accordance with the Danish Tax Agency. It is therefore important to use an expense type labeled: (0 VAT).
Contact
Christian Landsgaard Finance and Accounting chris@adm.dtu.dk