- Denmark’s Tax Agency published a National Tax Court decision clarifying who can use the second-hand VAT regime.
- A used watch reseller was audited, found unregistered for VAT, and assessed VAT; after registering retroactively, it sought second-hand regime treatment.
- The Tax Agency denied the request, but the National Tax Court said VAT Act liability depends on carrying out economic activity, not prior VAT registration.
- The ruling also referenced EU VAT Directive rules in support of this interpretation.
Source: news.bloombergtax.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.
