Asker is a municipality that transfers real estate to a contractor for the construction of housing.
The Tax Council decides that the transfer is not considered delivery for consideration within the meaning of the VAT Act, cf. section 8 (1) of the VAT Act. 1, 1st sentence, opposite. This with reference to the fact that Spørger has at no time been entitled to a VAT deduction in relation to the real property.
For this reason, the transfer is not subject to VAT.
Source: skat.dk
