Denmark Tax Agency Clarifies VAT Liability, Deductions, Reverse Payment Obligations

The Danish Customs and Tax Administration March 13 posted online National Tax Court Decision No. SKM2024.165.LSR, clarifying VAT liability, input VAT deductions, and the reverse charge mechanism. The taxpayer, a scrap metal reseller, didn’t declare VAT under the reverse charge provisions of Section 46 of the VAT Act. The Tax Agency increased its VAT liability and disallowed specific input VAT deductions. On appeal, the National Tax Court upheld the decision, finding: 1) not all the sellers were VAT registered; 2) it was therefore correct to calculate VAT under Section 46 on the invoices the taxpayer issued to sellers that were ...