Denmark Tax Agency Posts Decision Clarifying VAT Deductions for Holding Companies

The Danish Customs and Tax Administration Oct. 8 posted online National Tax Court Decision No. SKM2024.496.LSR, clarifying VAT deductions for holding companies. The taxpayer was an intermediate holding company that held shares in real estate development companies. The taxpayer intended to purchase accounting, technical, and project development services from its parent company, then invoice them to the companies. The Tax Council issued a binding answer that the taxpayer’s provision of the services to the companies wasn’t economic activity that gave the taxpayer the full right to deduct VAT on costs directly and immediately connected to the invoicing. On appeal, the ...