The questioner, who is a singer and composer, intends to transfer the copyrights to his music to a company as part of an upcoming generational change. This is a transfer of all copyrights incl. unlimited transfer of the remuneration rights from Koda/NCB regarding all previous musical works. Licenses are attached to the copyrights as a result of entered into management agreements. The company to which the copyrights are to be transferred intends to continue the economic activity relating to the copyrights by continuing and entering into management agreements/licenses against payment of remuneration.
The Tax Council found that the intended transfer of the questioner’s copyright constitutes a partial business transfer within the meaning of the VAT Act. A total asset consisting of the business assets of an identifiable part of the questioner’s economic business (an economic unit) is transferred. The transfer takes place with a view to the company being able to continue the operation of the previous activity in the economic unit. What is being transferred is the questioner’s company with copyrights and associated management agreements entered into. The transfer is therefore exempt from the scope of the VAT Act and therefore does not entail an obligation to pay VAT. The transfer of the copyrights is therefore already not covered by the exemption for authorship and composition as well as other artistic activity.
Source: skat.dk
