Denmark Tax Agency Issues Control Signal on VAT Treatment of Building Sites

The Danish Customs and Tax Administration Dec. 22 issued Tax Administration Control Signal No. SKM2023.637.SKTST, clarifying the VAT treatment of building sites. The control signal clarifies: 1) that if an otherwise fully functional building, for VAT purposes, is unusable at delivery due to demolition, the remaining building parts must be deemed an unfinished construction that is unsuitable for VAT purposes; 2) that foundations don’t constitute buildings with respect to VAT; 3) that building maturation measures established to enable construction of a building on the land don’t constitute buildings for VAT purposes; 4) changes to practices regarding adopted local plans, and ...