Donor semen is subject to 25% VAT from January 1, 2012 for clients in the EU without a VAT-number.
In 1990 Cryos contacted the Danish tax authorities regarding VAT on sales of donor semen. The Tax authorities decided that donor semen was not a "commodity" but a "treatment" so there was no VAT on donor semen.
However, in 2011 the Danish tax authorities changed this decision. Consequently, Cryos has been forced to add VAT on donor semen from January 1, 2012.
Cryos raised an appeal at the Danish National Tax Tribunal (Landsskatteretten) on the basis that the decision is in conflict with the intentions in the Danish Tissue Act, the EU Tissue Directive and the Convention on Human Rights. Landsskatteretten upheld the decission on April 23, 2012.
When are VAT added?
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Clients in
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Denmark
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EU1)
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World
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Donor semen, freight and other goods
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+
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+
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-
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Donor semen for reservation
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+
|
+
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+/-2)
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Deposit fee
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+
|
+
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+
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1) Clients in EU with a VAT-number (if the VAT-number is informed to Cryos): No VAT will be added.
2) As the donor semen is not exported VAT will be added. When/if export take place: the amount including VAT is credited and the VAT-amount is refunded and a new invoice without VAT is made.