Denmark Tax Agency Clarifies Eligibility for Second-Hand VAT Regime

The Danish Customs and Tax Administration June 2 posted online National Tax Court Decision No. SKM2026.258.LSR, clarifying eligibility for the second-hand VAT regime. The taxpayer, a used watch reseller, wasn’t registered for VAT and was assessed VAT upon audit. The taxpayer then registered retroactively and requested access to the second-hand regime, which the Tax Agency denied. On appeal, the National Tax Court found that: 1) the VAT Act’s provisions, including on the second-hand regime, don’t require that a company is registered for VAT for liability under the Act, but merely that it has economic activity; 2) EU Directive 2006/112/EC on ...