The National Tax Court found that it could not be assumed that a company’s services could be qualified as VAT-exempt passenger transport, cf. section 13 (1) of the VAT Act. 1, No. 15.
The company’s customers were sailed out to a designated location in order to have the experience of fishing in an attractive location, after which they were sailed back again.
The National Tax Court noted that a qualification of a service as passenger transport presupposes that a person is transported from one place to another, and that the main purpose of the transport is to be transported from one place to another.
The National Tax Court found that the company’s services could not be qualified as passenger transport. It was taken into account that the customers were sailed out to a fixed location and back again, and that the main purpose of this transport was to fish at this attractive location.
Thus, the services were subject to VAT, cf. section 4 of the VAT Act.
Source: skat.dk
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