Denmark Tax Agency Clarifies VAT Exemption on Sale of Used Cars

The Danish Customs and Tax Administration July 8 posted online Eastern High Court Decision No. SKM2025.411.OLR, clarifying the VAT exemption on the sale of used cars. The taxpayer, an individual, owned a business that sold used cars. The case concerned whether the taxpayer satisfied the conditions for a VAT exemption under section 34(1)(1) of the VAT Act regarding its sales of used cars to buyers in various countries from 2011 to 2014, as well as whether there were grounds to overrule the Tax Agency’s discretionary increase in the taxpayer’s VAT liability for the 2011-2012 period. In upholding the district court’s ...