The European Commission continues to review how Member States have introduced social exemptions in the field of VAT. It has recently formally requested Denmark to change its law regarding the application of certain exemptions under the VAT Directive. Under Danish law, an exemption from VAT is given to charitable and non-profit making associations' supplies, as well as to goods supplied by second-hand shops. The Commission considers such exemptions to go beyond what is allowed under the VAT Directive.

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