Danish Court Rules Amateur Gamer’s Skin Sales Not Subject to VAT Due to Lack of Profit Motive

• The Danish Customs and Tax Administration posted a National Tax Court Decision on June 2
• The decision focused on criteria for economic activity for VAT purposes
• The taxpayer was an amateur video game player who bought and resold game skins for a small profit
• The Tax Agency assessed VAT on the sales income due to frequent and high-volume transactions
• The National Tax Court found the taxpayer did not engage in economic activity under the VAT Act
• The skins were acquired for personal use in the game
• There was insufficient evidence of a profit motive as skins were resold at similar prices and conditions

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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