Court Rules on VAT Deductions and Acquisition Tax for Vehicle Purchases in Denmark

The case involved the eligibility of the plaintiff to deduct VAT for the purchase of three vehicles from July 1, 2015, to December 31, 2016, totaling 639,455 DKK
The court found the plaintiff was not entitled to deduct VAT as the vehicles were not proven to be for taxable business supplies or part of a car dealership business
The case also concerned whether the Tax Agency correctly increased the plaintiff’s acquisition VAT by 135,689 DKK for a vehicle acquired from a leasing company in Y1-country from January 1, 2015, to June 30, 2015
The court found the acquisition was a taxable purchase, not a leasing service
The case addressed whether the company was entitled to a refund of 333,750 DKK in sales VAT invoiced to leasing companies from January 1, 2016, to June 30, 2016, and January 1, 2018, to June 30, 2018
The court found the plaintiff was not entitled to a refund as the sales VAT was not corrected
The case involved whether conditions for extraordinary reopening under tax administration law were met
The court found conditions were met as the vehicle purchases were of a private nature and the agency met the response deadline
The court had to decide on the plaintiff’s main claim regarding the right to challenge the Tax Agency’s total VAT increase of 1,310,103 DKK for six vehicles
The Ministry of Taxation argued the plaintiff could only challenge the VAT treatment of three vehicles appealed to the National Tax Tribunal
The court upheld the Ministry’s claim for dismissal and acquitted the Ministry of all other matters

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.