Danish Court: VAT Liability on Group Advance Invoices Arises Only Upon Service Performance

• Danish court ruled that VAT liability and deduction rights arise when services are performed, not when advance invoices are issued.
• Taxpayers failed to prove VAT liability was triggered by advance invoicing.
• Invoices did not meet formal requirements, increasing the burden of proof for taxpayers.
• VAT liability for services only arises upon performance unless advance invoices clearly specify the nature and timing of future services.

Source: globalvatcompliance.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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