Danish Court Upholds Denial of VAT Deduction for Diamond Purchase by Investment Company

• The Danish Customs and Tax Administration posted a National Tax Court Decision on April 25
• The decision clarified input VAT deductions for diamond purchases
• A private limited company bought a diamond to resell for profit
• The Tax Agency denied the company’s input VAT deduction request
• The National Tax Court upheld the Tax Agency’s decision
• The court found that buying and selling shares is not an economic activity under the VAT Act
• The company’s activities were considered passive investments, not economic activities
• The Tax Agency’s denial of the VAT deduction was deemed correct

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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