Deductibility of Input VAT for Unregistered Company: No Fraud, Case Remitted for Reassessment

• The case concerned whether a company was rightfully denied VAT deduction for Q1–Q3 2022 due to operating as an unregistered business with alleged fraudulent intent.
• The company’s accountant applied for VAT registration, but the application was denied due to unmet security requirements; a subsequent application was withdrawn for the same reason.
• The Tax Agency assessed the company’s output VAT but denied input VAT deduction, citing fraudulent intent to evade tax.
• The Tax Appeals Board found no fraudulent intent, as the company had continuously recorded VAT and kept the Tax Agency informed.
• The case was remanded to the Tax Agency to reassess the company’s right to deduct input VAT, provided material conditions are met.

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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