Denmark Tax Agency Clarifies VAT Treatment of Insurance Activities, Business Transfers

The Danish Customs and Tax Administration Feb. 17 posted Tax Council Binding Answer No. SKM2026.87.SR, clarifying the VAT treatment of insurance activities and business transfers. The taxpayers, the Danish branches of multiple companies, were part of a nonresident insurance group. The taxpayers sought clarification on various issues, including on whether they met the conditions for Danish joint VAT registration, as well as on the VAT treatment regarding the conclusion of an agency agreement between the specified branches and the transfer of employees. Upon review, the Tax Council found that: 1) it couldn’t be confirmed that entering into a specific agreement ...