National Tax Court Rules on VAT Deduction for Advisory Service Expenses in Share Sale

• Danish Customs and Tax Administration clarified VAT rules on advisory service expenses related to sale of capital shares
• Taxpayer is a company registered for consulting services and holding capital shares
• Tax Agency disallowed input VAT deduction on advisory service expenses for VAT-exempt letting after sale
• National Tax Court ruled expenses for advisory services directly linked to VAT-exempt sale of shares
• Taxpayer not entitled to deduction for input VAT on consultancy services
• Expenses not considered general expenses as they were directly connected to VAT-exempt sale of shares
• Purpose of company’s sale of shares irrelevant to right of deduction

Source: globalvatcompliance.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.