- The case concerned whether a vessel qualified as a “pleasure craft” under Danish VAT rules, which would prevent exemption under section 34(1)(7) and (8).
- The court held that the key test is whether, by design, layout, and appearance, the vessel is intended for leisure and recreational use.
- Based on an overall assessment, the vessel was found to be a pleasure craft.
- Therefore, its rental and the purchase of related equipment were not VAT-exempt.
- It did not matter that one sister company had leased the vessel to another company that then rented it out commercially.
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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