VAT Liability for Invoiced Sales Tax: Employee vs. Self-Employed Status in Subcontractor Agreements

• The case concerned whether the complainant received income as an employee or as part of independent business activity.
• The Tax Appeals Board upheld the Tax Agency’s decision that the income was earned as an employee.
• The Board ruled that the complainant was liable to pay the “sales VAT” listed on invoices, even as an employee, since the VAT was charged and not corrected with credit notes.
• The Board referenced relevant EU court cases and found that anyone who states VAT on an invoice must pay it to the state, regardless of tax status, unless the error is corrected.
• The decision modified the Tax Agency’s ruling accordingly regarding the VAT liability.

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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