Denmark Tax Agency Clarifies VAT Deduction Rules for Management Services Provided to Group-Affiliated Company

The Danish Customs and Tax Administration Jan. 28 posted online Tax Council Binding Answer No. SKM2026.54.SR, clarifying VAT deduction rules for management services provided to a group-affiliated company. The taxpayer, a Danish subsidiary of an EU-established alternative investment fund (AIF) manager, sought clarification on whether, among other things, it was entitled to a full VAT deduction for costs used for both taxable domestic services and financial services delivered to its nonresident parent, as well as whether the specified activities were exempt from payroll tax. Upon review, the Tax Council found that: 1) it couldn’t be confirmed that the taxpayer was ...