National Tax Court
Case number
21-0021579
A company that operated a service and repair of aircraft parts asked the Tax Council for a binding answer to whether 1) it could be confirmed that the transfer of used aircraft parts from Denmark to Germany for the purpose of carrying out repairs in Germany should not be considered a taxable transfer of goods for own use, cf. § 10 of the VAT Act, and if 2) it could be confirmed that the transport of a used but repaired aircraft part from Germany to e.g. Spain for the purpose of installation or assembly in an aircraft in Spain, did not constitute a VAT-liable transfer of goods for own use from Denmark to Spain, cf. VAT Act § 10. The Tax Council answered the questions with “Yes, but see recommendation and justification”. The company complained about the binding answers to the National Tax Court.
During the hearing in the National Tax Court, the company’s representative stated that the transfer of the aircraft parts in question did not constitute a transfer of goods subject to VAT pursuant to section 10, subsection of the VAT Act. 1, as the aircraft parts did not belong to the company, but were the property of the airlines. The Tax Agency stated during the court hearing that it was a prerequisite in the Tax Council’s reply that the aircraft parts were owned by the company until the aircraft parts were inserted into the aircraft in question.
Given this incorrect premise for the Tax Council’s binding answer, the National Tax Court remanded the answers to the questions for renewed consideration by the Tax Council.
Source: skat.dk
