Denmark Tax Agency Issues Control Signal on VAT Treatment of Loan Services

The Danish Customs and Tax Administration Feb. 23 issued Tax Administration Control Signal No. SKM2024.102.SR, clarifying the VAT treatment of loan services. The control signal clarifies that: 1) the investor must pay in a cash lump sum and receive a return on future profits from the sale of a development project in a limited-time contract; 2) if the project is sold to a capital fund in advance with a rental guarantee after a year, then the investor doesn’t acquire ownership of rights in the company; 3) the investor isn’t allowed to demand the repayment of the purchase price for the ...