Denmark Tax Agency Issues Control Signal on Output VAT Deduction Policy Change

The Danish Customs and Tax Administration Oct. 30 issued Tax Administration Control Signal No. SKM2025.610.SKTST, clarifying an output VAT deduction policy change. The control signal clarifies that: 1) the current policy is that the “irrelevant purpose” concept under the VAT Act’s output VAT provisions includes all activities outside the Act’s scope, like the exercise of authority; 2) the policy change is that in the future, a specific assessment must be made regarding whether an activity is covered by the concept; 3) if the activity isn’t covered, output VAT shouldn’t be paid if goods that are part of the company’s assets ...