Tax Council Denies VAT-Free Sale of Plots Under VAT Act § 13, Section 2

• The tax council could not confirm tax-free sale of two plots under the VAT Act.
• The municipality bought the plots in 2006 for urban renewal and sale.
• The plots were leased without VAT from 2013 to 2021.
• A conditional purchase agreement was made, transferring plots after a local plan was adopted.
• The plots became building land only after the local plan adoption.
• Since the plots were acquired for sale, they were not solely used for VAT-exempt activities.
• The plots were not used for VAT-free leasing after the local plan adoption.
• Therefore, the sale could not be VAT-free under the VAT Act.

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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