The Tax Agency had not approved the company’s deduction for input VAT on expenses for the construction of a number of properties which, after completion of construction, the company used for VAT-exempt letting. The National Tax Court found, in accordance with the Tax Agency, that the properties were built for the purpose of VAT-exempt letting. The company was therefore not entitled to a deduction, cf. section 37, subsection of the VAT Act. 1, at the time of deduction. The National Tax Court emphasized that the company had not proved that there was an original or subsequent intention to carry out taxable transactions.
Source: skat.dk
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