Denmark’s Supreme Court Decision: VAT Abuse in Intragroup Transactions and Implications for Companies

• Denmark’s Supreme Court ruled on abuse of VAT rules through intragroup transactions
• Court found that transactions between an insurance company and its subsidiary were subject to VAT
• Companies in Denmark can apply for joint registration for VAT purposes
• Benefits of VAT grouping include simplified administration and improved cash flow
• Understanding joint registration rules is crucial for tax optimization and compliance
• Case involved leasing of IT and telephone systems between insurance company and subsidiary
• Tax authorities challenged VAT treatment of intragroup transactions
• Supreme Court ruled in favor of tax authorities, emphasizing true nature and purpose of transactions
• Court found that VAT group was structured to avoid VAT, leading to ruling in favor of tax authorities.

Source: bdo.global

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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