No VAT Deduction or Tax Relief for Alleged Subcontractors; Company Liable for Unpaid Taxes

• The case concerned whether a company used subcontractors or its own employees for work delivered to its customers.
• The court ruled that the company failed to prove it used the claimed subcontractors and that the invoices did not reflect real services.
• As a result, the company was denied VAT deduction on the invoices.
• The court found the work was done by the company’s own employees, and the company was liable for unpaid A-tax and AM-contributions.
• The Ministry of Taxation was acquitted.

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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