The Danish Customs and Tax Administration has clarified the VAT treatment of digital accessories traded within online games in National Tax Court Decision No. SKM2023.504.LSR, which was posted online. The case revolved around a taxpayer who engaged in the purchase and sale of digital accessories, commonly known as “skins,” in online games, without reporting or remitting VAT for these transactions. Following an investigation, the Tax Agency issued a notice of increased VAT liability.
In the subsequent appeal process, the National Tax Court supported the Tax Agency’s decision and made the following key determinations: