Denmark Tax Agency Clarifies Input VAT Deductions for Purchase of Diamonds

The Danish Customs and Tax Administration April 25 posted online National Tax Court Decision No. SKM2025.221.LSR, clarifying input VAT deductions for the purchase of diamonds. The taxpayer, a private limited company that owned and managed shares in subsidiaries and associated companies, purchased a diamond for the purpose of reselling it for a profit. The Tax Agency denied the taxpayer’s request for an input VAT deduction for the purchase of the diamond. Upon the taxpayer’s appeal, the National Tax Court upheld the Tax Agency’s decision, finding that: 1) an activity involving the purchase, possession, and sale of shares didn’t constitute an ...