Danish National Tax Court Allows Extraordinary VAT Reassessment Due to Gross Negligence in Airline Case

• The Danish National Tax Court clarified when extraordinary VAT reassessment is allowed due to gross negligence.
• A Danish airline used incorrect VAT deduction percentages and failed to make required year-end adjustments, understating its VAT liability.
• The taxpayer also improperly claimed full deductions for certain energy taxes.
• The court found these repeated errors amounted to gross negligence.
• The court upheld the tax authorities’ decision, allowing an extraordinary reassessment of the airline’s VAT liability.

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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