- The Danish Customs and Tax Administration clarified input VAT deductions on advisory services.
- A parent company was formed to purchase shares in a subsidiary for providing management services subject to VAT.
- The Tax Agency denied input VAT deductions for advisory services purchased before the company was formed.
- The National Tax Court found the services were purchased by or for investors, not the taxpayer.
- No documentation showed investors intended to provide VAT-liable services to the taxpayer at the time of service delivery.
- The taxpayer was not a taxable person when the services were delivered.
- One invoice was a re-invoicing of expenses not subject to VAT.
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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