VAT-deductible non-profit association

Spøger is a non-profit organization whose aim is to spread awareness of x, create greater understanding of x’s conditions and ensure x’s place in Danish society.

It is the Tax Agency’s assessment that Spørger’s activities in the form of sales of goods from the webshop, sponsorships and the delivery of services to business partners are activities subject to VAT.

On the other hand, the questioner’s membership fee income is not covered by the scope of the VAT Act, as the questioner is not seen on the present basis to provide any concrete consideration to the members for the membership fee.

It is also the Tax Agency’s assessment that the Questioner’s activities of running the association “Y”, donating x to kindergartens, sending out learning packages, establishing teaching areas, etc. falls outside the scope of the VAT Act, as the foundation does not carry out economic activities with these activities, cf. the VAT Act § 3 and § 4, subsection 1.

On this basis, the questioner does not have access to full VAT deduction rights according to section 37, subsection of the VAT Act. 1, but on the other hand only partial right to deduct VAT according to section 38, subsection of the VAT Act. 2.

Source: skat.dk

---

---