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Denmark Tax Agency Clarifies VAT Deduction for Motor Vehicle Parking Space Construction Costs

  • Danish Tax Agency clarifies VAT deduction for motor vehicle parking space construction costs
  • Taxpayer sought confirmation regarding VAT deduction for employee parking space renovation expenses
  • Tax Council couldn’t confirm VAT deduction and clarified that it didn’t cover employees’ personal motor vehicles
  • Renovation expenditure covered by deduction limitation under section 42, subsection 1 of the VAT Act
  • Deduction limitation introduced to avoid difficulties in delineating private driving from business driving

Source: news.bloombergtax.com

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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