Denmark Tax Agency Clarifies VAT Liability on Commercial Sales of Undeveloped Land

The Danish Customs and Tax Administration Feb. 21 posted online National Tax Court Decision No. SKM2025.80.LSR, clarifying VAT liability on commercial sales of undeveloped land. The taxpayer, a company engaged in renting out commercial properties, purchased a farmhouse and stables, rented out the farmhouse as a residence, and subdivided four plots to construct residences on them and sell them. The taxpayer sold the four plots undeveloped. The Tax Agency increased the taxpayer’s output VAT, finding the sales subject to VAT as sales of building plots. The Tax Appeals Board recommended upholding the increase. The National Tax Court, upheld the increase, ...