Denial of VAT Deduction for Advisory Expenses Related to Subsidiary Share Acquisition

The company was denied the right to deduct VAT on expenses related to advisory services and preliminary investigations for acquiring shares in a subsidiary. The advisory services were deemed to have been purchased by or on behalf of investors and used in their decision-making process, not by the company itself. Consequently, the company was not entitled to VAT deductions on the invoices in question. Additionally, an invoice from a management company was considered a re-invoicing of expenses without the provision of taxable services, thus incorrectly charged with VAT, leading to the denial of VAT deduction rights. The decision by the Tax Authority was upheld.

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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