- The court ruled that a self-governing institution carried out both non-economic activities (welfare work for seafarers funded by mandatory welfare charges) and VAT-liable business (user-financed video services).
- These were considered separate activities, not a single economic enterprise.
- The court confirmed that Danish law allows for a proportional deduction of VAT on general expenses when both economic and non-economic activities are present.
- The tax authority correctly determined the institution’s partial VAT deduction based on the proportion of income from welfare charges and VAT-liable services.
- This method objectively reflects the share of expenses attributable to each activity, in line with EU law.
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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