Tax Council Denies VAT Exemption for Investment Fund Management Due to Lack of Risk Diversification

• The inquiry involved management services provided to an alternative investment fund focused on collective investment in real estate in Denmark.
• The fund’s assets were held in a wholly-owned subsidiary that invested in a single property consisting of two addresses but legally considered one property.
• The property included four buildings with various residential and commercial leases and a parking area.
• The Tax Council determined the fund’s investments did not meet the risk diversification requirement.
• Consequently, the management services were not eligible for VAT exemption under the relevant tax law.

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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