Denmark Tax Agency Clarifies Marginal VAT Treatment of Intra-Group Airline Ticket Resales

The Danish Customs and Tax Administration Feb. 25 posted National Tax Court Decision No. SKM2026.99.LSR, clarifying the marginal VAT treatment of intra-group airline ticket resales. The taxpayer, a travel agency, used a subsidiary to buy airline tickets and resell them VAT-free at an increased price to reduce its marginal VAT. On appeal, the National Tax Court found that: 1) the subsidiary acted for the taxpayer’s account and risk and didn’t conduct independent economic activity; 2) the subsidiary therefore was not a taxable person and that the intercompany resale was outside the scope of the VAT Act; 3) the price markup ...