VAT on participants' payment

The new rules are that from 1 January 2026, you as a trader must charge VAT on the students' participation fees when they attend classes in individual subjects such as music, singing, dance, magic, circus, acting, visual arts, fitness, yoga, etc.

Exceptions where VAT does not need to be charged

There are 2 types of learners who will be exempt from charging VAT:

  • Children and young people - even up to the age of 29.
  • Students who have a professional purpose in receiving the programme. For members of the Danish Artist Association, this can be, for example:
  • Students who are performing musicians, singers or performing artists - or who are teachers themselves. Neither needs to be their main occupation.
  • Students who are studying music or performing arts with the intention of applying to a music or performing arts programme or who intend to become a performer in the field. However, students may already be exempt based on their age.

For the exemptions, you will need to register your students' birthdays and their purpose for receiving the training, as it is the individual student's payment that will - or will not - be subject to VAT. Remember the GDPR regulations.


Do you fall above or below the VAT registration threshold?

For sales subject to VAT in a calendar year up to and including DKK 50,000, VAT registration is voluntary. It is then only mandatory from the point in the year when you exceed the threshold.

Note that the DKK 50,000 limit applies to all your sales subject to VAT. Therefore, if you sell music releases, merchandise, books, counselling and more, this also counts towards the DKK 50,000 limit.

But you should not include what is exempt from VAT: for example, teaching that is exempt based on the age or professional purpose of the students, artistic services, performances, etc.

If you're below the registration threshold, then you'll actually be able to offer tuition without charging VAT for all your students.

 

The VAT requirement does not apply to those who are employed or engaged to teach

If you are hired to teach as a salaried employee or on one-off occasions as a fee recipient, you will not fall under the VAT regulations. It is the person who collects the participant payment who must collect any VAT from the student.

If you have questions about your accounting and VAT, you can get an accountant consultation at Dansk Artist Forbund: Auditor consultation