Danish Court Upholds Tax Agency’s Denial of VAT Deductions on Subcontractor and Material Sales

• The Danish Customs and Tax Administration released a City Court Decision on December 16
• The decision addresses deductions for input VAT and operating costs linked to subcontractor expenses and material sales
• A development and design company claimed these deductions
• The Tax Agency rejected the input VAT deduction claims and raised the company’s taxable income and VAT obligations
• The City Court supported the Tax Agency’s decision
• The court found the company did not sufficiently prove the legitimacy of the subcontractor services claimed
• The court agreed with the increase in the company’s sales VAT and taxable income due to unreported income from material sales

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.