Danish Court Denies VAT Deductions for Concert Company Due to Insufficient Subcontractor Documentation

• The Danish Customs and Tax Administration clarified VAT deduction rules for subcontractor invoices.
• A company in the concert and event industry claimed input VAT deductions for services in 2020 and 2021.
• The Tax Agency denied the deductions due to insufficient documentation.
• The City Court found no supporting contracts, timesheets, or correspondence.
• There was no evidence that subcontractor services were re-invoiced to customers.
• The taxpayer failed to prove genuine subcontractor relationships existed.
• Submitted invoices did not meet statutory requirements for VAT deduction.
• The taxpayer was not entitled to deduct the input VAT.

Source: news.bloombergtax.com

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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