- SKAT did not approve the company’s deduction for input VAT on expenses for advisory services purchased in connection with the sale of shares in a subsidiary
- The National Tax Tribunal found, in line with SKAT, that the expenses for advisory services could be directly attributed to the company’s VAT-exempt sale of shares in the subsidiary, and therefore the company was not entitled to a deduction for input VAT on the expenses for advisory services
- The expenses for advisory services were considered to have a direct and immediate connection to the VAT-exempt sale of shares in the subsidiary, and were not considered general expenses
- The ultimate purpose of the sale of shares by the company was found to be irrelevant to the question of the company’s right to deduct the purchased advisory services
- The fact that the company used some of the proceeds from the sale of shares for its VAT-taxable economic activity could not change the outcome
- The National Tax Tribunal upheld SKAT’s decision.
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.
