Danish Court Clarifies VAT Timing for Advance Invoicing Between Group-Affiliated Companies

• The case involved two group-affiliated companies disputing when VAT liability and deduction rights arise for advance invoicing of services.
• The companies argued VAT liability and deduction rights arose at the time of advance invoicing.
• The Tax Agency maintained that VAT liability only arises when services are actually performed.
• The City Court ruled that VAT liability and deduction rights arise at the time of service performance, not advance invoicing.
• The court also found the invoice did not meet requirements, increasing the burden of proof for specifying future services.

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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