Invalid “decision” – Felling, chipping, driving away, etc. of wood subject to VAT

The case, which was brought by a sole proprietorship and its owner, concerned whether SKAT’s decision to increase the company’s VAT liability was valid, even if the decision did not refer to the company or its CVR no. Furthermore, the case concerned whether the Landsskatterett’s annulment of the original “decision” in the appeal, the content of which was inconsistent with the vote of the Landsskatterett’s judicial members, was valid. Finally, the case concerned whether the company had to settle VAT on felling, chipping, driving away, etc. in connection with the purchase of root wood, or whether the company could deduct the value of the wood chips that were purchased from customers, before calculating VAT.

The High Court agreed that SKAT’s decision was valid. The High Court further accepted that the National Tax Court’s original “decision” was invalid and that the High Court was entitled and obliged to annul it. The National Tax Court’s decision to annul the original “decision” was not invalid as a result of party hearing errors. The High Court then agreed that the company should calculate VAT on the value of the company’s supplies before deducting the value of the wood chips produced. (Confirmation of SKM2022.6.BR ) 



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