- A company is considering purchasing a property for renting out for course and conference activities
- The property is divided into several plots, most of which are jointly registered except for one
- There is also an activity track on the property, for which the seller is voluntarily VAT registered
- The Tax Council notes that the joint registration results in the transaction being seen as the transfer of two separate properties, each needing individual assessment
- The Tax Council cannot confirm that the company is entitled to deduct VAT that the seller intends to charge on the purchase price as the VAT for both properties is charged in violation of VAT laws
- The transfer of the jointly registered plots with one larger building, several smaller buildings, and the activity track is considered a VAT-free business transfer according to VAT law section 4, paragraph 5
- The company plans to continue renting out the activity track
- Failure to notify the tax authorities about the transfer does not make the transfer subject to VAT
- The transfer of the last plot is also considered a VAT-exempt transfer of real estate according to VAT law section 13, paragraph 1, number 9
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.
