Denmark Tax Agency Clarifies VAT Treatment of New Construction of Replicated Historic Ship

The Danish Customs and Tax Administration Dec. 19 posted online National Tax Court Decision No. SKM2023.610.LSR, clarifying the VAT treatment of the new construction of a replicated historic ship. The taxpayer sought a VAT exemption for services related to the construction of a replicated historical ship. The Tax Council denied the exemption. On appeal, the National Tax Court upheld the Tax Council’s decision, and held that: 1) the VAT exemption only applies to the sale, conversion, repair, maintenance, chartering, and letting of ships with a gross tonnage of 5 tonnes, or a gross registered tonnage of 5 tonnes or more; ...