Propagation of spinach considered as a service relating to immovable property

In connection with a complaint about a binding answer from the Tax Council, the National Tax Court found that the company’s intended supply of services had its place of supply for VAT purposes in Denmark, as the special rule in § 18 of the VAT Act on the supply of services in relation to the company’s immovable property applied.

The company’s intended service consisted of the propagation of spinach seeds, which were, among other things, sown in, fertilized and harvested from specific parts of the company’s land. The National Tax Court found that the company’s immovable property, of which the company’s land was a part, constituted a central and essential component of the intended service, cf. the VAT regulation, article 31a, subsection 1, letter a).

The National Tax Court upheld the Tax Council’s binding answer.



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