Denmark Tax Agency Clarifies VAT Treatment of Sales of Licensing Rights

The Danish Customs and Tax Administration Nov. 7 posted online Tax Council Binding Answer No. SKM2024.552.SR, clarifying the VAT rules regarding sales of licensing rights. The taxpayer sold the exclusive licensing rights to publish, sell, and market four computer games. The taxpayer inquired as to whether the transfer of intangible assets constituted a VAT-exempt business transfer under Section 4(5) of the VAT Act. The Tax Agency found that the transfer was a sale subject to VAT. The Tax Council agreed, finding that: 1) the transfer didn’t qualify as a VAT-exempt business transfer because the taxpayer continued publishing, selling, and marketing ...