Denial of VAT refund due to joint registration with Danish company

The complaint was that the Tax Authority did not grant a British company’s application for VAT refund on the grounds that the company was jointly registered with another British company, H2 Limited, which was VAT registered in Denmark. The National Tax Tribunal found that joint registrations in certain third countries should be treated in the same way as joint registrations in EU countries, and that the UK was included in this. The joint registration made in the UK should therefore be understood in accordance with Article 11 of the VAT Directive and C-7/13 (Skandia America Corp. (USA) Branch Sweden), whereby the members of the joint registration together formed one taxable person. The consequences of the joint registration included, among other things, that VAT was settled on a joint declaration. The National Tax Tribunal found that when H2 Limited was the settling entity in the joint registration, and that H2 Limited was responsible for submitting a joint VAT return for the entire joint registration. The British company could therefore not obtain a VAT refund in relation to the services acquired in Denmark, as it was a condition of the VAT Act that the taxable person was not VAT registered in Denmark. A condition that the British company did not meet. The National Tax Tribunal upheld the Tax Authority’s decision.

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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