Denmark Tax Agency Posts Decision Clarifying VAT Exemptions on Rental Property Transfers

The Danish Customs and Tax Administration Feb. 12 posted online National Tax Court Decision No. SKM2024.86.LSR, clarifying VAT exemptions on rental property transfers. The taxpayer owned capital shares in several subsidiaries, one of which was created to buy newly built rental property and was not registered for VAT. Previously, the Tax Agency had rejected the taxpayer’s argument that certain property could be sold VAT-free to a buyer who continues renting the property. On appeal, the National Tax Court upheld the Tax Agency’s decision, holding that: 1) the taxpayer was a taxable person engaged in the purchase and sale of real ...