Denmark Tax Agency Clarifies VAT Deduction for Motor Vehicle Parking Space Construction Costs

The Danish Customs and Tax Administration Jan. 9 posted online Tax Council Binding Answer No. SKM2024.20.SR, on the VAT deduction for construction costs related to motor vehicle parking spaces. The taxpayer ran a business subject to VAT and incurred costs for the renovation of a car park. The car park is used by visiting business guests, customers, and the company’s employees for their own personal motor vehicles. The taxpayer sought confirmation regarding a VAT deduction for the employee parking space renovation expenses under section 37 of the VAT Act. The Tax Council couldn’t confirm the VAT deduction and clarified that ...