Change in VAT deduction rules for real estate investments – Reopening of consultation process.

• The Tax Agency’s practice of correcting previously made deductions has been rejected by the Danish Court
• The Tax Agency is changing practice so that total repayment of deductions for changes in the use of immovable property no longer has to be made
• The change applies to immovable property covered by the regulatory rules in §§ 43-44 of the VAT Act
• In the event of a change in use from sale to VAT-free rental, withdrawal taxation must be applied going forward

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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