In 2025, VAT will be introduced on the rights fees charged to providers of e.g. radio, TV and festivals.

The government is aware of the inconvenience caused to Danish artists as a result of the change in the VAT Act and has therefore set aside DKK 45 million annually for artists.

Therefore, the Danish Artist Association is pleased that the politicians are setting aside a fixed amount for artists who may be affected by the new rules.

“Selvom den nye afgift ikke direkte rammer kunstnerne, vil den påvirke den kulturelle fødekæde. Derfor er det både rigtig og godt, at politikerne viser forståelse og allokerer midler til at afbøde konsekvenserne. Næste skridt er, at vi skal samarbejde om pengenes fordeling. Her vil forbundet prioritere, at midlerne skal direkte ud til musikkens kunstnere” siger Dansk Artist Forbunds forperson, Sara Indrio.

The Ministry of Culture expects to have a concrete model for how the subsidy will be paid out in spring 2025.


New VAT on rights management

The new law change does not directly affect the individual artist, musician or performing artist. Artists are still exempt from VAT when receiving rights revenue. VAT must be collected downstream when others licence the work and rights of performers.

The proposal exempts artists because it is a smaller version of a previous bill on VAT on rights at all levels. It was taken off the table two years ago after solid arguments from, among others, the Danish Artist Association against imposing cumbersome VAT accounting on close to 100,000 Danish rights holders.

Read more about the background to the change in VAT law here 

New VAT rules will hit especially hard

  • TV production companies
  • Organisations that are exempt from VAT - e.g. festivals, churches, and non-commercial local radio stations
  • TV package providers
  • Heirs of rights