Danish Tax Council Clarifies VAT Treatment of Business Transfers in Restructurings

• Danish Customs and Tax Administration clarified VAT treatment of business activity transfers in corporate restructurings.
• A service company transferred an activity to a new subsidiary through a contribution in kind, then to another group company in a vertical merger.
• The subsidiary was dissolved after 20 days and wasn’t VAT registered.
• The Tax Council confirmed that transactions after the vertical merger could be considered in classifying the transfer for VAT.
• The in-kind contribution was considered a VAT-free business transfer because the activity continued unchanged as a VAT-taxable activity by the other group company.

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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