- A municipality entered into a development agreement requiring property owners to cover costs for road intersection construction and billed them accordingly.
- Only municipalities can make such agreements under Danish law, acting as public authorities.
- The Tax Council (Skatterådet) found that municipalities are not competing with private businesses in this context.
- Therefore, the municipality is not considered a taxable person for VAT regarding these agreements.
- The invoiced services under the development agreement are not subject to VAT.
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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