Denmark Tax Agency Clarifies VAT Exemption for Artistic Activity

The Danish Customs and Tax Administration Oct. 13 posted City Court Decision No. SKM2025.573.BR, clarifying the VAT exemption for artistic activity. The taxpayers, companies operating tattoo studios, challenged an estimated VAT assessment made based on deposits in their bank accounts. The taxpayers argued that their supply of tattoo services qualified for the VAT exemption for artistic activity. Upon review, the City Court found that the taxpayers failed to: 1) maintain or reconcile a cash account as required by the Accounting Act; 2) provide objective evidence linking individual deposits to the services; 3) meet the burden of showing that each service ...