Tax treatment of property transfer to Energinet Eltransmission under expropriation-like conditions.

• The case involved the tax and VAT treatment of the transfer of part of the taxpayer’s property to Energinet Eltransmission under expropriation-like conditions for the construction of a new transformer station.
• The Security and Tax Council confirmed that the taxpayer could transfer part of the property without including the taxable profit in their taxable income.
• The area being transferred was classified as building land in a local plan, allowing for commercial construction, making it subject to VAT.
• The transfer was not exempt from VAT as it had been used for both taxable and tax-exempt activities in the past.
• The termination of the taxable lease did not trigger a VAT payment, and the land was not considered to have been acquired at that time.
• The Tax Council could not confirm that the transfer of part of the property was not subject to VAT upon sale.

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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