Danish Tax Authority Disallowed VAT deduction for expenses on rental townhouses

The Danish Tax Authority (Skattestyrelsen) had not approved the company’s deduction for input VAT on expenses for the renovation of townhouses The company put the townhouses into use for VAT-exempt rental after construction The National Tax Tribunal (Landsskatteretten) found that the company was not entitled to a deduction under the VAT Act The company had not demonstrated an intention to carry out taxable transactions The company renovated the property with a view to transferring it to an investor with rental activity

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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