Danish Tax Council Clarifies VAT-Exempt Status for Rental Property Transfers

• The Danish Customs and Tax Administration released a Tax Council Binding Answer on December 18
• The document clarified VAT exemptions for business transfers of rental properties
• A taxpayer involved in building rental properties for residential and commercial use contributed a property with a lease and tenant to a property company
• The Tax Agency determined this act as a VAT-exempt business transfer under the VAT Act Section 4(5)
• The Tax Council concurred with the Tax Agency’s decision
• The transfer included the entire rental property, the rental agreement, and other related rights and obligations
• The property company plans to continue the rental activities which are subject to VAT

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.