VAT Exemption for Independent Groups with Non-Taxable Activities

• The question was about whether an administrative company could provide services to its members without VAT.
• The VAT exemption in the VAT Act applies to members who have activities for which they are not subject to VAT.
• The exemption does not apply to any type of business that is not subject to VAT, but only to those listed in the VAT Act.
• The members of the independent group (the two foundations) were considered to be carrying out activities of general interest.
• The foundations could only make distributions for charitable purposes and had no other activities.
• The independent group could provide services without VAT to its members.
• The members of the independent group could receive VAT-exempt services for their non-taxable activities, even if they had taxable activities.
• The independent group could provide taxable and non-taxable services to non-members, while also providing services without VAT to its members.

Source: info.skat.dk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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