Danish Tax Council: Christmas Calendars with Prize Draws Are VAT-Exempt Lotteries, No Input VAT Deduction

• The Danish Tax Council ruled that Christmas calendars combining discounts and prize draws are treated as a single, composite service.
• Such calendars are considered lotteries and are exempt from VAT under Danish law.
• Buyers cannot separate the discounts from the prize draws; the product is sold as one unit.
• VAT exemption means the association cannot deduct input VAT on related costs.
• Lottery tax may still apply, pending a separate decision by the Gambling Authority.

Source: fiscal-requirements.com

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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