Denmark Tax Agency Clarifies VAT Deduction Rules for Real Property Purchase

The Danish Customs and Tax Administration Dec. 6 posted online Tax Council Binding Answer No. SKM2024.617.SR, clarifying the VAT deduction rules for purchases of real property. The taxpayer, a company, planned to acquire jointly listed parcels of land containing multiple properties and an activity track. The taxpayer intended to continue renting one of the properties that the seller was VAT-registered to lease. The taxpayer sought clarification regarding whether it could deduct the VAT charged to the purchase price by the seller. The Tax Council agreed with the Tax Agency’s recommendations, and found that: 1) the property transfer that included the ...