Partnership and owners not considered one taxable person for VAT purposes

• Partnership and its owners are not considered one tax liable entity according to the Danish Tax Council
• A consulting company structured as a corporation with employee shareholders planned to transfer all assets and liabilities to a newly established partnership
• Each employee would establish a holding company that would own shares in the partnership to continue operations unchanged
• The Tax Council could not confirm that the partnership and its owners should be treated as a single tax liable person
• Premium payments to partnership owners were confirmed as not subject to VAT since they do not constitute consideration for deliveries under VAT law

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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