Tax Exemption for Summer House Rentals: Free Experiences Provided by Owners Remain Untaxed

• The complaint concerned whether a company’s VAT exemption for mediating summer house rentals would change if the owner provided free experiences to renters at their own expense and risk.
• The Tax Appeals Board noted that the special scheme for travel agencies generally applied when the agency provided at least two independent main services to the traveler.
• If a company offered only one independent main service, it was generally not covered by the special scheme.
• The decision to offer free low-value services in connection with the rental was solely the summer house owner’s, who also bore the cost.
• The company mediated the rental of the summer house, including mandatory free access to these services, and could not opt out of this.
• The free services were not separately priced but included in the marketing of the summer house.
• The rental price was set independently of the number of guests and the extent to which the free services were used.
• Any user of the summer house, including the owner, could use the free services.
• The Tax Appeals Board found that the average renter would view the rental and the free access to experiences as a single service.
• Therefore, the company was providing a single main service, not meeting the conditions for the special rules for travel agencies.
• The company’s mediation of summer house rentals remained VAT-exempt under the relevant law.
• The Tax Appeals Board changed the Tax Agency’s response to “Yes.”

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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