- The Danish Customs and Tax Administration posted National Tax Court Decision No. SKM2024.328.LSR on June 14.
- The decision clarifies the VAT exemption under Section 13 of the VAT Act for travel agencies arranging holiday home rentals.
- A travel agency inquired if the VAT exemption would be affected if homeowners included free access to third-party services, like a water park.
- The free access wasn’t separately stated in the rental prices, and the travel agency couldn’t opt out of offering it.
- The Tax Agency initially found the travel agency was covered by the special regime for travel agencies under Section 67 of the VAT Act.
- Upon review, the National Tax Court found: 1. The taxpayer conveyed a single main service, as renters would view the home and mandatory free access as one service. 2. The special rules under Sections 67-68 for travel agencies were not met.
- However, the rentals were still covered by the VAT exemption under Section 13.
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.
