Tax Council Denies VAT Exemption for Fund Management Due to Lack of Risk Diversification

• The inquiry involved management services provided to an alternative investment fund focused on collective investment in real estate in Denmark.
• The fund’s assets were held in two wholly-owned subsidiaries, each investing in a property located about 8 km apart.
• One property included commercial leases, residential leases, and club rooms.
• The other property had several buildings with a few commercial leases and antenna rental spaces, undergoing conversion for mixed residential and commercial use.
• The Tax Council determined the fund’s investments did not meet the risk diversification requirement.
• Consequently, the Tax Council could not confirm that the services were exempt from VAT under the management of investment associations.

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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