VAT exemption
VAT exemption
If you run a business in EU – and therefore in Denmark – you may be VAT/moms liable. VAT is to be paid if you offer goods or services, you receive payment, your customer or the use is in EU, the delivery will often be subject to VAT.
However, many services are considered valuable for the society and necessary to keep affordable. Some of these services are subject to VAT exemption – thus there is NO VAT on these services. If there is no VAT claimed on the services, the business owner cannot deduct VAT in the business expenses. However, VAT exemption is often useful if you deliver services to a private person or to a customer that cannot deduct the VAT on your invoice.
The services subject to VAT exemption is in relation to our client´s services in medical services and analyzing, educational services, art, authors, lecturers, financial services and assets, housing, some kinds of property, transport of people and sports. The exemptions are limited and very specific. In example an psychologist or a dentist will often have VAT-free and VAT liable services.
PrivatRevision can help you with clarifying if a business or specific transactions are VAT liable or exempted. We may help you with a business set up including both VAT liable and VAT-free services or we may help you with confirmation of VAT exemption.