The Danish Tax Authority (Skatterådet) issued a binding ruling (SKM2023.328.SR) regarding the issuance of financier contracts and their treatment under the Danish VAT Act and tax laws. The ruling confirmed that the issuance of financier contracts would be considered a loan and fall outside the scope of VAT. However, the returns from such contracts would be subject to VAT as consideration for a taxable person. The ruling also clarified that the financier contract should be treated as a financial contract for tax purposes, with gains and losses calculated according to the cost basis method. The value of the contract should be determined based on its market value at the end of the fiscal year.
Source: info.skat.dk
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