Denmark Tax Agency Clarifies VAT-Exempt Business’ Entitlement to Additional VAT Reimbursement on Sales Through PE

The Danish Customs and Tax Administration June 12 posted online Eastern High Court Decision No. SKM2023.264.ØLR, clarifying whether a VAT-exempt insurance business is entitled to an additional reimbursement of VAT resulting from the insurance sales to Norwegian customers through its permanent establishment (PE) in Norway. A Danish company, part of a VAT group in Denmark, sought reimbursement of VAT on costs incurred for its insurance and reinsurance business both within and outside the EU. The tax agency partially reimbursed the VAT and disallowed the VAT relating to the business of the company’s Norwegian PE. The high court upheld the tax ...