- The case concerns a planned Metro operations and maintenance contract in Copenhagen, where the company’s main revenue would come from VAT-exempt passenger transport.
- The company wanted to set up a structure with a purchasing company and a services company, including pre-invoicing cleaning services for the full 12–15 year contract period.
- The Tax Council could not confirm that this arrangement would shift the VAT liability from the actual delivery time to the earlier invoicing time under Danish VAT rules.
- The Council found the structure did not reflect the real economic and business reality, but was an artificial arrangement between related parties.
- It appeared designed to create VAT deduction rights that the company would not otherwise have under the VAT Act.
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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