Denmark government is proposing a VAT exemption for airlines that primarily operate domestic flights within the country .
This move aims to support airlines, simplify regulations, and encourage a higher volume of domestic air travel.
Previously, only airlines with a majority of international services enjoyed VAT exemption.
Transport Minister Thomas Danielsen believes the new rule will “stop punishing” airlines for focusing on domestic routes and “make room for more” such flights.
This change could significantly benefit Midtjyllands Airport , a small domestic hub facing potential closure.
Midtjyllands Airport, formerly Karup Airport, is a Danish airport serving nine municipalities in central and western Jutland.
It is located near the town of Karup and shares its space with Air Base Karup, the main base of the Royal Danish Air Force.
Minister Danielsen sees it as “an overall package” boosting the airport’s viability.
The Tax Ministry formally proposes the law change, taking effect in January 2025.
Tax Minister Jeppe Bruus emphasizes the initiative’s potential to create a more level playing field for airlines and improve domestic connectivity.
This proposal comes amidst the government’s announcement of a new air travel tax based on flight destinations, starting in 2025.
(eTN):Denmark Considers VAT Exemption for Domestic Airlines | re-post license | post content