- The case involved whether SKAT was correct in rejecting a company’s claim for a VAT deduction on expenses related to the purchase of a property and the setup of a commercial lease.
- The rejection was based on the claim being part of VAT fraud.
- The individual, A, owned the company and its sister company through a holding company and was also the director of the sister company.
- On June 6, 2017, the director was aware that the sister company had not declared or paid the output VAT and was under bankruptcy proceedings.
- The Tax Appeals Board (Landsskatteretten) found that the company was aware of the fraudulent behavior of the sister company in the previous transaction stage.
- Consequently, the company was not in good faith regarding the transactions forming the basis for the VAT deduction.
- Therefore, the company was not entitled to the deduction under VAT Act § 37.
- The Tax Appeals Board upheld SKAT’s decision.
Source: info.skat.dk
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.
