- Danish Tax Agency clarifies VAT liability increase and non-approved input VAT deduction on rental home construction
- National Tax Court Decision No. SKM2024.234.LSR posted online by Danish Customs and Tax Administration
- Project company in parent company’s group engaged in real estate investment and rental activities
- Tax Agency did not approve input VAT deduction for expenses related to conversion of property used for VAT-exempt letting
- Tax Agency increased company’s VAT liability and disallowed specific input VAT deductions
- National Tax Court upheld Tax Agency’s decision, citing lack of proof of intention to execute taxable transactions and indication of property remodeling for transfer to investor with existing rental activity.
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.
