Denmark Tax Agency Clarifies VAT Liability for Advertising Compensation Paid to Social Media Influencers

The Danish Customs and Tax Administration Jan. 15 posted National Tax Court Decision No. SKM2026.31.LSR, clarifying VAT on advertising activities and journalistic business. The taxpayer, an individual, created paid content as an influencer through a social media company, and sought clarification on whether the income received as money or products constituted VAT-exempt journalistic activity or taxable independent business activity. The Tax Agency stated the income was taxable as advertising revenue. On appeal, the National Tax Court found that: 1) the taxpayer was required to pay VAT on all consideration, whether monetary or in kind, because the services were predetermined advertising ...