Zero-VAT route via Denmark - how does it work?
This is widely used on aircraft, and other sizeable items, to strip the VAT off the item. This yields a "VAT paid" status, and a certificate of free circulation from Denmark. An intermediary is involved who charges a hefty fee.
Today I was speaking to my accountant about this, and he can't see how it can work, because in the UK the Revenue has the power (since a test case c. 1979 I think) to disregard any series of transactions if they don't have a real commercial purpose.
I can see this Denmark route would work safely on the initial purchase (i.e. you buy the plane from a Danish seller, to start with) but I can't see how anybody can use it to zero-VAT a plane they already own.