Danish government could make domestic flights VAT free
The government in Denmark is considering a VAT exemption for airlines which primarily operate domestic flights in the country.
The government is considering the move in a bid to help airlines and local airports and to simplify rules. Until now, only airlines with a majority of their services abroad have qualified for VAT exemption.
The potential change announced by the Ministry of Transport in a press statement.
Transport Minister Thomas Danielsen said it could support a higher volume of domestic flights in Denmark.
“It makes no sense to be punished for only flying domestically. We are putting a stop to that and making room for more domestic flights,” Danielsen said in the statement.
READ ALSO: How much will Denmark's new air travel taxes cost passengers?
One airport which could benefit from the decision is the tiny Midtjyllands Airport, which is the base for a small domestic flight between Central Jutland and Copenhagen.
The local airport received significant state backing in 2023 as it fought to avoid closure.
“This is an overall package which will give the airport a good chance to operate domestic flights,” Danielsen said.
The law change, which would take effect in January 2025, is formally proposed by the Tax Ministry.
Tax Minister Jeppe Bruus said Midtjyllands Airport is important for businesses and local employment.
“With the changes we are making to VAT rules we are ensuring that more [airlines] will bid on domestic routes on equal terms. We also hope that the changes will contribute to better transport connections across the country,” Bruus said in the statement.
Last year, the government announced that flights departing from Denmark will pay a new air travel tax from 2025, with the fee based on the destination of the flight.
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The government is considering the move in a bid to help airlines and local airports and to simplify rules. Until now, only airlines with a majority of their services abroad have qualified for VAT exemption.
The potential change announced by the Ministry of Transport in a press statement.
Transport Minister Thomas Danielsen said it could support a higher volume of domestic flights in Denmark.
“It makes no sense to be punished for only flying domestically. We are putting a stop to that and making room for more domestic flights,” Danielsen said in the statement.
READ ALSO: How much will Denmark's new air travel taxes cost passengers?
One airport which could benefit from the decision is the tiny Midtjyllands Airport, which is the base for a small domestic flight between Central Jutland and Copenhagen.
The local airport received significant state backing in 2023 as it fought to avoid closure.
“This is an overall package which will give the airport a good chance to operate domestic flights,” Danielsen said.
The law change, which would take effect in January 2025, is formally proposed by the Tax Ministry.
Tax Minister Jeppe Bruus said Midtjyllands Airport is important for businesses and local employment.
“With the changes we are making to VAT rules we are ensuring that more [airlines] will bid on domestic routes on equal terms. We also hope that the changes will contribute to better transport connections across the country,” Bruus said in the statement.
Last year, the government announced that flights departing from Denmark will pay a new air travel tax from 2025, with the fee based on the destination of the flight.
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