VAT Exemption for Fitness and Sports Facilities Confirmed by Tax Council

• The Tax Council held that access to fitness, group training, badminton, pickleball, volleyball, and a climbing wall qualifies as VAT-exempt under Danish VAT Act § 13(1)(5).
• The provider was considered a non-profit, and the activities were treated as sport and physical exercise offered in direct connection with the benefit of the sports user.
• The Council found that the services met the “in close connection with” requirement through a directive-consistent interpretation, including the necessity test.
• It rejected directive-consistent interpretation for the “no distortion of competition” condition, as that would conflict with the wording and purpose of Danish law.
• The activities were also confirmed exempt from payroll tax (lønsumsafgift).

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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