Case: Construction for another’s account – time of agreement – time of construction

The court found that an agreement for the transfer of a property, on which a garage was to be built and a clubhouse converted into a villa, was entered into at the latest on 25 August 2010, although the final note was only signed on 26 October 2010. The court further found, that the taxpayer (the seller of the property) had not met its burden of proof that the pouring of the foundation for the garage and the remodeling of the clubhouse had begun before the conclusion of the agreement. Therefore, the construction was covered by the rules on construction for others’ account. Since the taxpayer had to be considered a taxable person according to Section 3, subsection of the VAT Act. 1, the construction services were subject to VAT, cf. the VAT Act § 4, subsection 1.

Source: skat.dk

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