Deduction of Import VAT by the Lessee

• The taxpayer leases certain assets from a lessor and imports them from a location outside the EU.
• The Skatterådet confirms that it is a lease purchase, but the assessment should be made on a case-by-case basis.
• The leasing services are not considered as consideration for received services, but as part of the consideration for the purchase of the assets.
• The taxpayer is treated as the buyer of the assets and is entitled to deduct the import VAT.
• The taxpayer has exclusively taxable activities and handles the import of the assets to Denmark.
• The leasing agreement allows the taxpayer to purchase the assets either at the end of the contract period or earlier.
• The transfer of ownership does not require additional payment if all leasing payments are made.
• The transfer of ownership before the contract period’s expiration requires payment of the remaining leasing payments minus an early payment discount.
• The leasing agreement can also be extended, and the leased goods can be returned to the lessor at the end of the contract.
• The lease agreements have a typical duration of 5 years, and the assets’ lifespan is typically 8.5 years.
• The taxpayer still needs the assets for business operations at the end of the lease period.
• The taxpayer believes they are entitled to deduct the import VAT based on the provisions of the VAT Act.
• The VAT Act allows deduction of import VAT paid in accordance with the provisions of the Act.

Source: info.skat.dk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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