Denmark Tax Agency Clarifies VAT on Sales of Condominium Parking Spaces

The Danish Customs and Tax Administration Jan. 15 posted Tax Council Binding Answer No. SKM2026.25.SR, clarifying VAT on sales of parking spaces. The taxpayer, a developer, purchased condominium parking spaces before construction and inquired whether its sale of them after construction was exempt from VAT. Upon review, the Tax Council found that: 1) the economic reality of the contractual relationship between the taxpayer and the seller was that the parties acted as developers, and the construction wasn’t carried out solely at the seller’s expense; 2) the taxpayer, therefore, purchased a share in the parking project, including construction services, and not ...