Denial of VAT Deduction for Diamond Purchase Due to Passive Investment Activity

• No deduction approved for purchase VAT on diamond acquisition
• Case involved a company seeking VAT deduction for a diamond purchase
• Company activities included owning and managing shares in subsidiaries and investing in securities
• Tax authority noted these activities did not constitute economic business under VAT law
• Company did not buy or sell other investment objects during the registration period
• Activities were considered passive investment, not economic business
• Tax authority’s decision to deny VAT deduction was upheld by the tax tribunal

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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