Denmark Tax Agency Clarifies VAT Deduction on Acquisition of Medical Clinic’s External Number

The Danish Customs and Tax Administration Jan. 14 posted online Tax Council Binding Answer No. SKM2025.11.SR, clarifying VAT deductions on the acquisition of a medical clinic’s external number. The taxpayer, a company, planned to acquire an existing medical clinic’s external number and associated capacity. The Tax Agency found that the taxpayer can’t deduct VAT on the purchase price for the existing practice’s transfer of the external number and associated capacity since it constitutes a VAT-free business transfer. The Tax Council agreed with the Tax Agency’s recommendation, finding that: 1) the taxpayer can’t deduct VAT on the purchase price since the ...