Denmark Tax Agency Clarifies Input VAT, Operating Expense Deductions on Vehicle Purchases

The Danish Customs and Tax Administration Dec. 12 posted City Court Decision No. SKM2025.721.BR, clarifying input VAT deductions and corporate income tax expense deductions on vehicle purchases. The taxpayer, a company, claimed input VAT deductions and operating expense deductions based on eight invoices on purchases of cars from another company. The Tax Agency denied the deductions. On appeal, the City Court found that: 1) the invoices lacked details, such as chassis number, model, year, and mileage; 2) there were no written contracts supporting the taxpayer’s argument that it purchased and resold the cars without profit as a favor to the ...