Company Liable for VAT on Fake Invoices Under Section 46(7) of the Danish VAT Act

• A company was held liable under VAT Act § 46, section 7, for VAT listed on fictitious invoices issued to VAT-registered businesses.
• These businesses used the invoices to claim VAT deductions, exposing the tax authority to potential revenue loss.
• The court found that the company’s ultimate owner authorized a third party to act on the company’s behalf, including issuing invoices.
• It was irrelevant that the third party misused this authority to commit VAT fraud and money laundering without the owner’s knowledge or consent.

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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