Disallowed deduction for expenses for purchase VAT for purchase and construction of orangery

• Skattestyrelsen did not approve the deduction for expenses related to the purchase of an orangery
• The orangery was intended for selling orangeries and showcasing furniture and decorative art
• The orangery was located on the same property as the director’s private residence
• The orangery was considered suitable for private use
• The company had to prove that the orangery was exclusively used for business purposes
• The company failed to prove that the orangery was solely used for the taxable business
• The decision was upheld by the National Tax Tribunal.

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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