Taxation of deliveries in bankruptcy – Timing of VAT liability before and after decree

• The bankrupt has operated a pig farming business until it was taken into bankruptcy. The last delivery of piglets occurred before the bankruptcy decree, and payment was made after the usual procedure following the bankruptcy decree. The bankruptcy estate receives the invoice and payment.
• Skatterådet cannot confirm that payment for the delivery of piglets made before the bankruptcy of the farming business should be periodized according to the invoicing date after the bankruptcy decree. VAT liability for the delivery arises at the time of delivery before the bankruptcy decree.
• Question: Can it be confirmed that VAT liability for A’s receipt of payment from G1 regarding the delivery on 22 February 20xx arose at the invoicing date on 10 March 20, and therefore should be attributed to the bankruptcy estate’s VAT reporting after the decree date?
• Answer: No

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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