14 maj 2020
Højesteret
Special VAT scheme for second-hand goods
Company not allowed to use the special VAT scheme for second-hand goods when reselling spare parts from damaged vehicles purchased from an insurance company
Case no.143/2017
Judgment delivered on 9 April 2019
Sjelle Autogenbrug I/S
vs.
The Danish Ministry of Taxation
Interveners for the appellant:
Dansk Bilbrancheråd (trade organisation for the Danish car industry)
Dansk Autogenbrug (Danish automotive recycling association)
SKAD (Danish association for vehicle repairers and builders)
SMEdenmark
Company not allowed to use the special VAT scheme for second-hand goods when reselling spare parts from damaged vehicles purchased from an insurance company
The case concerned whether the special VAT scheme for second-hand goods gave Sjelle Autogenbrug the right to charge VAT on its profit on the resale of used spare parts taken from damaged vehicles purchased from insurance companies. The insurance companies take over these vehicles from policyholders when they pay out compensation.
The Supreme Court found that the conditions in the Danish VAT Act for use of the special VAT scheme were not met.
The High Court had reached the same conclusion.