Denmark Tax Agency Clarifies VAT Treatment of Management Services for Alternative Investment Fund

The Danish Customs and Tax Administration March 27 posted online Tax Council Binding Answer No. SKM2025.165.SR, clarifying the VAT treatment of management services provided to an alternative investment fund (AIF). The taxpayer, a licensed AIF manager, provided management services to an AIF engaged in acquiring, building, leasing, operating, and seling real estate in Denmark. The taxpayer sought clarification on the obligation to pay VAT for the management services provided. The Tax Council found that: 1) the fund’s investments didn’t satisfy the condition that the fund must invest based on a principle of risk diversification; and 2) the taxpayer’s services weren’t ...