Danish Tax Council Clarifies VAT Deduction Rules for Real Property Purchases

• The Danish Customs and Tax Administration released a Tax Council Binding Answer on December 6
• The document clarified VAT deduction rules for real property purchases
• A company sought to buy land with multiple properties and an activity track
• The company planned to continue renting out one of the properties
• The Tax Council found the property transfer including the activity track to be VAT-exempt
• The VAT charged by the seller was deemed invalid as the sale was not a business transfer
• Consequently, the taxpayer could not deduct the VAT from the purchase price

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.