Denmark Tax Agency Explains VAT Liability for Advisory Services Provided by Nonresident Supplier

The Danish Customs and Tax Administration Oct. 10 posted online Tax Council Binding Answer No. SKM2024.510.SR, explaining VAT liability for invoicing advisory services to a Danish holding company. The taxpayer, a holding company based in Denmark, sought clarification on the place of supply for fund advisory services provided to its parent company by a nonresident third company, and invoiced to the holding company in Denmark. The Tax Council clarified that Danish VAT didn’t apply, because: 1) the taxpayer’s only activities were acquiring and holding shares, which didn’t constitute economic activities subject to VAT in Denmark; 2) given that the taxpayer ...