Tax on medical services, education, authors etc. (lønsumsafgift)
If you run a business offering services it may be relevant for you to clarify if your services – or some of them – are VAT liable or more interesting, subject to VAT exemption.
If your services are delivered against payment and also subject to VAT exemption they may be subject to the special tax on medical and healthcare services, education, cultural services, administration of property for housing (not rental), travel agencies, undertakers, sports and financial services. In Danish the tax I called “lønsumsafgift” and it is mandatory when your revenue on these services exceeds DKK 80.000 per year (calendar year).
There are in total 5 different methods (1, 2, 3, 4 with employees and 4 without employees), and the tax rate differs from 3.54% to 15,3%.
Most of our clients (psychologists, dentists, doctors, sports are charged with 4,12% on the profit of the business.
Please contact us for help with the special tax if relevant for you.