Binding answer
Summary
The Tax Council confirmed that a trade union and six local branches pursuant to the VAT Act’s 13, subsection 1, no. 19, could establish an independent group that could provide VAT-exempt services to the group members in the form of administrative assistance, including payroll accounting and bookkeeping, etc.
The independent group’s activities would be a continuation of the activities that had so far been carried out by the trade union for the local branches or by the branches themselves.
It had no effect on the VAT exemption according to section 13, subsection of the VAT Act. 1, no. 19, that one or more group members could be covered by the VAT Act’s rules on reverse payment obligations.
The Tax Council also confirmed that one or more group members who, in addition to their VAT-free professional association activities, covered by Section 13, subsection of the VAT Act. 1, no. 4, could also have activities subject to VAT when selling non-fiction to individual members of the association, and continue to participate in the independent group.
It was noted, however, that if services from the independent group to the members were used in whole or in part for use by the members for activities subject to VAT, then the services from the independent group did not meet the conditions for VAT exemption pursuant to Section 13, subsection of the VAT Act. 1, no. 19. In this case, the services from the independent group would be fully liable for VAT for the group members in question, cf. § 4 of the VAT Act.
Source: skat.dk
