Denmark Tax Agency Clarifies VAT Exemptions for Alternative Investment Fund Management Services

The Danish Customs and Tax Administration March 4 posted online Tax Council Binding Answer No. SKM2025.120.SR, clarifying VAT exemptions for alternative investment fund (AIF) management services. The taxpayer provided management services to an AIF whose purpose was to partake in collective investment through the acquisition, construction, rental, operation, and sale of real estate in Denmark. The fund’s assets were placed in a fully owned subsidiary that had invested in a plot of land on which townhouses and a communal house were built. The Tax Agency found that the management services provided to the fund were subject to VAT for not ...