Legal Dispute on VAT Deduction Rights for Subcontractor Invoices and Costs

• The case concerned whether the plaintiff had the right to deduct VAT and operating costs for 2016 and 2017 based on 13 invoices to a subcontractor and two recorded payments without invoices
• The court determined that the plaintiff and the alleged subcontractor were related parties
• The court concluded that the plaintiff did not meet the increased burden of proof to show the reality behind the claimed subcontractor services
• The court also found that the plaintiff’s sales VAT and taxable income for 2016 were rightly increased due to unrecorded income from a sale of materials

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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