Case: Increase in VAT liability – Unapproved deduction for purchase VAT – Operation of stud farms and breeding of racehorses

The case concerned whether the complainant, who ran a stud and racing business, was entitled to a deduction for purchase VAT for the period 1 January 2015 to 31 December 2017. The National Tax Court referred to the fact that the Court of Justice of the European Union in case C-432/15 (Baštová) had determined that a taxable horse owner’s provision of a horse to the organizer of a horse race with a view to the horse’s participation in a race did not constitute the provision of a service for consideration in cases where the provision did not give rise to the payment of a participation fee or other direct remuneration , and in those cases where it was only the horse owners whose horses placed well in the race who received a prize. The company only had premium income, which thus did not constitute delivery for consideration according to section 4, subsection 1 of the VAT Act. 1.

Source: skat.dk

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