Denmark Tax Agency Clarifies VAT Liability Regarding Subcontractor Agreements

The Danish Customs and Tax Administration Nov. 25 posted online National Tax Court Decision No. SKM2025.663.LSR, clarifying VAT liability regarding subcontractor agreements. The taxpayer, a company owner, sought clarification on whether he received income from an employer as an employee or as part of an independent business activity under a subcontractor agreement, and whether he was liable for paying the sales VAT on the invoices to the employer if the income was received as an employee. The Tax Agency held that the taxpayer received the income as an employee. On appeal, the National Court found that: 1) the taxpayer was ...