Denmark Tax Agency Posts Decision Clarifying VAT Deduction Conditions for Company Purchases, Resales

The Danish Customs and Tax Administration March 22 posted online City Court Decision No. SKM2024.196.BR, clarifying VAT deduction conditions for company purchases and resales. The taxpayer, a company registered retroactively for Danish VAT, purchased products from a group-related company and resold them to Danish customers without charging VAT. The taxpayer contested VAT deductions, claiming goods were sent directly from the warehouse to customers, but the Ministry of Taxation found they lacked sufficient documentation. On appeal, the City Court found that: 1) the taxpayer had neither documented that payment of the invoices for the claimed purchases and resales had taken place ...