Bachmann/Partners recently assisted an international company in a criminal case brought by the Danish Tax Agency. The case concerned the company’s previous handling of VAT in connection with distance sales to Denmark during the period 2019–2021.
Before our involvement, the Danish Tax Agency had assessed that the company should be fined DKK 590,000, as they believed the company had acted with gross negligence in connection with the missing Danish VAT registration.
The Danish Tax Agency had charged the company with gross negligence for conducting VAT‑liable business without Danish VAT registration and – in the later part of the period – for issuing invoices with Danish VAT without being registered.
The total Danish VAT liability was calculated at approximately DKK 625,000.
Based on our explanation, it was documented that the company had reported and paid VAT in Germany throughout the entire period, had acted in good faith based on advice from its tax consultant, and had immediately corrected the issues once the errors were discovered. We argued that gross negligence had not been present.
After our objections, the Danish Tax Agency withdrew the charge and closed the case, as there was no basis for criminal prosecution.
The case demonstrates how thorough legal assistance can ensure that companies are not subjected to unwarranted criminal liability in complex VAT matters.
If you have questions about VAT or other complex tax matters – or if your company risks facing a tax or criminal assessment – we are ready to advise and assist.
Feel free to contact Ann Rask Vang at +45 20 94 78 21 or by email at ava@bachmann-partners.dk.
Regardless of your situation, we can help you create the most advantageous solution. We have Denmark’s best
team of lawyers and experts, so you can be confident you are receiving the best advice.
We have offices in Copenhagen, Aarhus, and Aalborg, so you always have access to tax advice near you.
Contact us today
Or fill out the form to learn more about how we can help you or to book a meeting with us.
Then fill out the contact form below. Then a lawyer will contact you within the area you need help with.
