Denmark Tax Agency Clarifies Input VAT, Business Expense Deductions for Alleged Subcontractor Services

The Danish Customs and Tax Administration Oct. 29 posted City Court Decision No. SKM2025.607.BR, clarifying the input VAT and business expense deduction rules regarding alleged subcontractor services. The taxpayer, a business owner, sought deductions for input VAT and business expenses with respect to services allegedly provided by subcontractors. The Tax Agency denied the deductions and increased the taxpayer’s VAT liability and taxable income. Upon review, the City Court found that: 1) the taxpayer failed to meet the burden of proving the legitimacy of the service invoices or that services were actually provided given the lack of documentation and the alleged ...