VATupdate

Increase in VAT liability – Free transfer

A company that provided course services to companies and individuals handed out iPads to some of the course participants, e.g. to the participants who had first signed up for the individual courses. SKAT had increased the company’s VAT liability regarding the transferred iPads, as these were regarded as taken for free transfer, cf. section 5 (1) of the VAT Act. 1. The National Tax Court noted that the customer paid the same price, regardless of whether the customer received an iPad or not. Furthermore, as the company had not documented that there was a direct connection between the handed out iPads and the customers’ remuneration, the National Tax Court upheld SKAT’s decision.

Source: skat.dk

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