Ruling: VAT exemption – independent groups – trade unions – administrative assistance

1. Can the Tax Council confirm that services provided by an independent group, which is established with the aim of providing services to group members in the form of administrative assistance, including payroll accounting and bookkeeping, etc., can be exempt from VAT pursuant to section 13, subsection of the VAT Act. 1, no. 19, when the group’s activities are a continuation of the activities that have so far been carried out by the trade union towards the local branches or by the local branches themselves?
2. If the Tax Council answers question 1 in the affirmative, the Tax Council can then also confirm that there will be nothing to prevent one or more of the individual group members, in addition to their basic VAT-free professional association activities covered by Section 13, subsection of the VAT Act. 1, no. 4, will also be obliged to settle VAT according to the rules on the reverse payment obligation for VAT regarding IT equipment etc., and will still be able to participate in the group?
3. If the Tax Council answers question 1 in the affirmative, the Tax Council can then also confirm that there will be nothing to prevent one or more of the individual group members, in addition to their basic VAT-free professional association activities covered by Section 13, subsection of the VAT Act. 1, no. 4, will also be able to have activities in the sale of non-fiction to individual members of the trade union, and will still be able to participate in the group?
4. If the Tax Council answers question 3 “in the negative”, that book sales from associations or local branches will prevent participation in the establishment of the independent group, the Tax Council can then confirm that there will be nothing to prevent the independent group from establishing VAT-liable book sales from the independent group to the individual members who are organized in the association and in the local branches?

Source: skat.dk

---

---