- The Danish Tax Agency (Skattestyrelsen) made an extraordinary change to a company’s VAT liability for the period 1 January 2020 to 31 August 2020, totaling DKK 330,309.
- The company used a standard percentage to reduce deductible input VAT on shared costs, despite having calculated a different pro rata rate as required by law.
- The Tax Appeals Board (Landsskatteretten) found that the ordinary deadline for VAT reporting was not extended by later adjustments.
- The company’s VAT liability was set too low on an incorrect basis, and this was deemed at least grossly negligent.
- The company should have realized it was continuously reporting VAT in direct violation of the applicable rules.
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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