Denmark Tax Agency Clarifies VAT Treatment of Parking Space Rentals

The Danish Customs and Tax Administration Nov. 7 posted online Tax Council Binding Answer No. SKM2024.553.SR, clarifying the VAT treatment of parking space rentals. The taxpayer, a parking business, entered into an agreement with a real estate company for the taxpayer to rent out parking spaces to the tenants of a building in the taxpayer’s name. The taxpayer inquired as to whether the rentals were subject to VAT. The Tax Agency found that the supply of parking was a VAT-liable supply of a service in the form of the right to park, and not a VAT-exempt letting of immovable property ...