The case concerns whether a horse breeding and racing business was entitled to a deduction for input VAT for the period from January 1, 2015, to December 31, 2017. The National Tax Tribunal referred to a decision by the European Court of Justice in case C-432/15 (Baštová), which established that the provision of a horse by a taxable horse owner to the organizer of a horse race for the purpose of the horse’s participation in a race did not constitute a supply of services for consideration in cases where the provision did not result in payment of a participation fee or other direct remuneration, and in cases where only the horse owners whose horses were placed well in the race received a prize. The business only had prize income, which did not constitute consideration for supply under section 4(1) of the VAT Act. Therefore, the National Tax Tribunal upheld the Danish Tax Agency’s increase in the VAT liability.
Source: skat.dk
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