Questioner intends to transfer a land area when the land area has changed status from rural zone to urban zone.
Until 1 October 2020, the area has been used for Spørger’s VAT-liable agricultural operations, after which it has been transferred to VAT-free leasing in accordance with the VAT Act, section 13, subsection. 1, No. 8.
The Tax Council notes that the transfer must be regarded as delivery for consideration, cf. section 8 (1) of the VAT Act. 1, which is why the transfer is in principle subject to VAT.
However, given that the land area becomes a building plot at the time when the land area changes status from rural area to urban zone, the land area must be considered to have been used exclusively for VAT-exempt business at the time of the transfer. The transfer is therefore VAT-exempt, cf. section 13 (1) of the VAT Act. 2.
Source: skat.dk
