Denmark Court Denies VAT and Expense Deductions for Unsubstantiated Subcontractor Services

• The taxpayer claimed input VAT and business expense deductions for services allegedly provided by subcontractors.
• The Tax Agency denied the deductions and increased the taxpayer’s VAT liability and taxable income.
• The City Court found the taxpayer failed to prove the legitimacy of the invoices or that services were actually provided.
• The subcontractors were not VAT-registered or registered employers.
• The court upheld the denial of deductions and held the taxpayer liable for unpaid taxes and labor market contributions.

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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