VATupdate

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Denmark’s New VAT Rules Bring Uncertainty and Paperwork for Private Instructors and Small Businesses

  • From January 1, 2026, new Danish VAT rules will require private instructors in fields like music, dance, and fitness to charge VAT if their turnover exceeds 50,000 kroner, except for those working through municipal programs or recognized associations.
  • Adults over 30 taking lessons for leisure will pay 25% VAT, while those under 30 or taking lessons for professional reasons remain VAT-exempt.
  • Small businesses face increased bureaucracy, complex documentation requirements, and uncertainty about compliance, with concerns over verifying age/profession and handling data protection.
  • The changes are based on EU court rulings, and many small business owners fear higher prices, loss of customers, or even closure.
  • Authorities acknowledge the challenges and offer some support, but detailed guidance has been slow, and many questions remain unresolved.

Source: thedanishdream.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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