Denmark Tax Agency Clarifies Input VAT Deductions on Advisory Services

The Danish Customs and Tax Administration Sept. 12 posted National Tax Court Decision No. SKM2025.518.LSR, clarifying input VAT deductions on advisory services. The taxpayer, a parent company, was formed to purchase shares in a subsidiary to which it intended to provide management services subject to VAT. The Tax Agency denied the taxpayer input VAT deductions on the purchase of advisory services provided before the taxpayer was formed, finding the taxpayer didn’t bear the costs. Upon review, the National Tax Court found that: 1) the services were purchased by or for the investors, not the taxpayer; 2) no documentation showed that ...