Danish Tax Council Clarifies VAT Obligations for AIF Management Services Lacking Risk Diversification

• The Danish Customs and Tax Administration clarified VAT treatment for management services to an AIF.
• The taxpayer is a licensed AIF manager providing services to an AIF involved in real estate activities in Denmark.
• The taxpayer sought clarification on VAT obligations for these services.
• The Tax Council determined the fund’s investments did not meet the risk diversification requirement.
• The taxpayer’s services were not eligible for VAT exemption under Section 13 of the VAT Act.

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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