Union Services to Members Exempt from VAT Under Section 13(1)(4)

• A trade and employer association provided member services for a fee through membership dues.
• The Tax Council found that some of these services were VAT-exempt under Section 13(1)(4) of the Danish VAT Act because they served the members’ common interests and were closely linked to the association’s union-like purpose.
• VAT exemption was not considered to create unfair competition, since similar organizations would also be covered by the exemption.
• The Council therefore could not confirm that the entire membership fee was VAT-liable.
• The Council also rejected the idea that the association could choose to charge VAT on the exempt part of the fee.

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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