Denmark Tax Agency Clarifies VAT Treatment of Building Plot Transfers

The Danish Customs and Tax Administration April 24 posted online National Tax Court Decision No. SKM2026.200.LSR, clarifying the VAT treatment of building plot transfers. The taxpayer, a VAT-registered entity, transferred an undeveloped building plot to its wholly-owned partnership. The taxpayer sought confirmation that the transfer was subject to VAT, that the VAT base was the consideration charged if it exceeded the manufacturing price, and that VAT applied only to that amount excluding costs, such as broker fees. The Tax Agency confirmed that the transfer was subject to VAT but refused to answer the other questions. On appeal, the National Tax ...