Securities – VAT exemption – negotiations – legal services

The case concerned the VAT exemption of legal services provided in connection with the sale of company shares, cf. section 13 (1) of the VAT Act. 1, no. 11, letter e. It appeared from the provision that transactions, including negotiations, in connection with securities could be exempted. Shares or shares in a company were such securities, and the services of an adviser on the sale thereof could constitute negotiations which were covered by the exemption. It was a condition for VAT exemption that the adviser either had an authorization in relation to the terms of the agreement or a power of attorney in relation to the conclusion of the agreement.

On the basis of the specific circumstances of the case, the Tax Council could not confirm that the legal services were covered by the VAT exemption.

Source: skat.dk

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