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

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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