Business Activity – Deduction for Loss – Input VAT Deduction and Taxable Income

• The case involved whether the plaintiff’s business could be considered commercial in the years 2019-2021, allowing for deduction of the business’s losses
• The court found that the business was not operated commercially during that period, citing factors such as majority of losses coming from invoices issued by an affiliated company, continuous losses since 2017, and lack of prospects for profitability
• The case also involved whether the plaintiff met the conditions for deduction of input VAT for three invoices issued by the affiliated company
• The court found that the plaintiff did not prove that the invoiced service was a taxable supply, therefore denying the deduction of input VAT
• The Tax Ministry was therefore acquitted in the case.

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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