Denmark Tax Agency Clarifies VAT Liability Increase, Non-Approved Input VAT Deduction on Rental Home Construction

The Danish Customs and Tax Administration April 19 posted online National Tax Court Decision No. SKM2024.234.LSR, clarifying the increase in VAT liability and the non-approval of an input VAT deduction for construction on rental homes. The taxpayer, a project company in a parent company’s group, engaged in activities that included investing in and renting out real estate, as well as partaking in related business. The Tax Agency found that the company built terraced housing for residential purposes at the same time that it declared deductions for input VAT. The Tax Agency did not approve the company’s input VAT deduction on ...