Denmark Tax Agency Clarifies Refund Rules for Wrongly Invoiced VAT in Supreme Court Decision

• The Danish Customs and Tax Administration has clarified refund rules for wrongly invoiced VAT.
• The case involved a company that paid invoices with incorrect Danish VAT charges to its mobile phone supplier.
• The supplier went bankrupt, preventing the company from getting a VAT refund.
• The company claimed a refund based on the EU principle of VAT neutrality and effectiveness.
• The Ministry of Taxation denied the refund, stating that the supplier did not pay the VAT amount to the tax authority.
• The Supreme Court upheld the denial, ruling that the refund could only be claimed if the erroneously invoiced VAT was actually paid to the tax authority.
• The VAT Act regulates the relationship between the supplier and the tax authority, not the taxpayer.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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