Denmark Tax Agency Posts Decision Clarifying Input VAT, Operating Cost Deductions for Subcontractor Expenses

The Danish Customs and Tax Administration Dec. 16 posted online City Court Decision No. SKM2024.640.BR, clarifying deductions for input VAT and operating costs associated with subcontractor expenses and material sales. The taxpayer, a development and design company, claimed deductions for subcontractor expenses and material sales. The Tax Agency denied the taxpayer an input VAT deduction on these expenses and increased the taxpayer’s taxable income and VAT liability. On appeal, the City Court upheld the Tax Agency’s decision, finding that: 1) the taxpayer didn’t meet its increased burden of proof regarding the reality behind the alleged subcontractor services; and 2) it ...