VAT Adjustment on Sold Watches Under the Margin Scheme Increase in Tax Liability

• The case concerned whether a company could use the VAT margin scheme for sold watches even though it was not VAT-registered.
• The Tax Appeals Board held that VAT registration is not a requirement for being liable to VAT or for using the margin scheme; the key requirement is that the activity is economic.
• The board also relied on the EU VAT Directive, which allows taxable resellers to use the margin scheme.
• It found the company otherwise met the conditions for the scheme.
• As a result, the board overturned the tax authority’s decision.

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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