- VAT adjustment obligations arising from the sale of property and operating assets must be treated according to the nature of the underlying expense.
- For property improvements, the VAT adjustment obligation is added to the acquisition cost under the property gains tax law.
- For operating assets, the VAT adjustment obligation is added to the depreciation basis.
- The tax effect occurs at the time the VAT adjustment obligation arises, not when the original improvement expenses were incurred.
- The Tax Council did not confirm the taxpayer’s view that the obligation should be recognized at the time of the original expense.
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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