SKM number
SKM2023.71.SR
The Danish Tax Agency
21-0367326
Binding answer
The questioner owns an agricultural property of 105,699 m2. The questioner, as the sole owner, acquired the Property per 1 August 2004 and owns the property personally. The questioner has not used the Property himself during his ownership. The property has only been and continues to be made available free of charge to XI/S. XI/S uses the land for agricultural operations and rents out the buildings. The farmhouse is rented VAT-free, while outbuildings are rented including VAT. In 2021, the inquirer entered into a conditional purchase agreement with a Buyer according to which the Buyer can acquire an undeveloped part of the Property.
The Tax Council cannot confirm that the Questioner does not sell the property as a taxable person, as the Questioner cannot be considered to have made the property available free of charge to the partnership. This is intended to ensure that the partnership pays the property taxes, interest and installments etc. belonging to the property. on the property.
The Tax Council can, on the other hand, confirm that the questioner’s sale of the property is exempt from VAT according to section 13, subsection of the VAT Act. 2, on the condition that the Questioner, during his ownership period until the transfer to the buyer, has been invoiced for costs subject to VAT, which the Questioner has not been able to deduct for the reason that the costs have had a direct and immediate connection to the VAT-exempt rental.
Source: skat.dk
