Denmark Tax Agency Clarifies Input VAT Deductions on Subcontractor Services

The Danish Customs and Tax Administration Sept. 8 posted online City Court Decision No. SKM2025.499.BR, clarifying VAT deduction rules for subcontractor invoices. The taxpayer, a company in the concert and event industry, claimed input VAT deductions on services allegedly provided by subcontractors in 2020 and 2021. The Tax Agency denied the deductions for lack of sufficient documentation. On appeal, the City Court found that: 1) given that there were no supporting contracts, timesheets, or correspondence, nor evidence that the subcontractor services were re-invoiced to customers, the taxpayer failed to meet its heightened burden of proof to demonstrate that genuine subcontractor ...