Denmark Tax Agency Clarifies Acquisition VAT Rules for Motor Vehicle Purchases

The Danish Customs and Tax Administration Aug. 15 posted National Tax Court Decision No. SKM2025.430.LSR, clarifying the acquisition VAT rules for motor vehicle purchases. The taxpayer, an individual, bought an electric car from a German dealer. The Tax Agency assessed acquisition VAT on the taxpayer’s purchase, stating that the vehicle constituted a new means of transport under the VAT Act. The taxpayer appealed, arguing that the acquisition VAT should have been waived because the vehicle should have been considered used upon arrival in Denmark. Upon review, the National Tax Court found that: 1) the taxpayer’s car constituted a new means ...