In a binding response, the Danish Tax Agency found that the sale of a property by a partnership was not exempt from VAT under section 13(1)(9)(1) of the VAT Act on real property, but that the sale included a building plot not covered by the exemption. The property had a large plot of land on which an asphalt parking lot had been established in 2010, which had been used for rental to companies engaged in taxable business with the rental of parking spaces. The buyer acquired the property for the purpose of utilizing a building right for service and housing.The National Tax Tribunal stated that the sale concerned a real property that at the time of delivery was built with a ground-fixed construction in the form of an asphalt parking lot with a technical shed, electrical installations, light poles and drainage. The transfer of the property was not closely related to the partnership’s delivery of other services to the buyer such as demolition. In view of this, the National Tax Tribunal found that there was no sale of a building plot.The National Tax Tribunal therefore changed the Danish Tax Agency’s binding response.
Source: info.skat.dk
