Denmark Tax Agency Clarifies VAT-Exempt Business Transfers of Rental Properties

The Danish Customs and Tax Administration Dec. 18 posted online Tax Council Binding Answer No. SKM2024.646.SR, clarifying VAT-exempt business transfers of rental properties. The taxpayer engaged in the construction of rental properties used for residential and commercial purposes. The taxpayer made a contribution in kind of a property, which had an associated lease agreement and a tenant, to a property company. The Tax Agency found that the contribution in kind constituted a VAT-exempt business transfer under Section 4(5) of the VAT Act. The Tax Council agreed with the Tax Agency, finding that the: 1) transfer of the specified rental property ...