Denmark Tax Agency Clarifies Import VAT Deduction on Import of Leased Assets

The Danish Customs and Tax Administration Nov. 8 posted online Tax Council Binding Answer No. SKM2023.522.SR, clarifying import VAT deductions on imports of leased assets. The taxpayer imported leased assets from a non-EU country for use in Denmark. The lease agreement contained a hire purchase provision allowing the taxpayer the option to purchase the assets from the lessor. The taxpayer sought clarification on the right to deduct import VAT. The Tax Council confirmed that the taxpayer could deduct import VAT, because: 1) the consideration wasn’t for leasing services, but was instead for the purchase of assets; 2) the taxpayer had ...