Denmark Tax Agency Clarifies VAT Treatment of Library Fees, Royalties

The Danish Customs and Tax Administration Feb. 17 posted Tax Council Binding Answer No. SKM2026.86.SR, clarifying the VAT treatment of library fees and royalties. The taxpayer, an author, received annual library fees and royalties regarding books they had written and sought clarification on the VAT treatment of those fees and royalties. Upon review, the Tax Council found that: 1) the library fees received by the taxpayer weren’t subject to VAT; 2) the taxpayer didn’t make a supply for which the library fee could be considered as consideration; 3) the royalties the taxpayer received under contracts with a publisher constituted consideration ...