Danish Court Upholds VAT on Undeveloped Land Sales

• Danish Tax Court ruled on VAT liability for undeveloped land sales.
• Taxpayer sold four plots of land after subdividing them.
• Tax Agency increased output VAT, considering the sales subject to VAT.
• Tax Appeals Board recommended upholding the increase.
• National Tax Court upheld the increase.
• Court found the sales occurred in the taxpayer’s capacity as a taxable person and in the exercise of an economic activity.
• Taxpayer failed to prove the land was only used for VAT-exempt rental purposes.

Source: news.bloombergtax.com

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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