- A company provided labor-leasing services to a related company from 2015–2018, failed to charge VAT, but reported the full payments as taxable income.
- The tax authority reopened the VAT assessments extraordinarily and increased the VAT liability, initially calculating VAT as 20% of the received amounts.
- The Tax Appeals Board agreed the services were VAT-liable but held that, because the parties were related, VAT had to be calculated as 25% of the payments; it also reduced taxable income accordingly.
- In court, the company argued extraordinary reopening was invalid and that VAT should still be 20%; the Ministry later accepted the VAT calculation should follow the Tax Authority’s approach.
- The court found the company had acted at least with gross negligence, so extraordinary reopening was justified, and that the tax authority had only gained enough information to assess the matter when it received the auditor’s explanation.
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.
Latest Posts in "Denmark"
- Tax Court Upholds Extraordinary VAT Reassessment for Gross Negligence
- Recognized Airlines List for 2026
- Denmark Plans Food VAT Cut to Ease Living Costs, Faces Expert Concerns
- European Court – T-268/25 (Sampension Livsforsikring) – Judgment – VAT group 100% ownership condition precluded, but no direct effect
- Denmark Plans to Abolish VAT on Books — Zero Rate Proposed from 2027
