VAT refunds for another five years

Clubs, organisations and funds can expect another five years of VAT refunds when they construct buildings for leisure activities.

A bill has been submitted to amend to the law on VAT, so that the exemption, due to expire 31 December 2019, will be in force for another five years until 31 December 2024.

This exemption applies to clubs, organisation and funds that invest in non-commercial leisure activities that benefit the general public. They will be required to pay VAT like everyone else, but they are entitled to a full refund.

One condition

The condition for receiving a full VAT refund is that the investment is more than DKK 1 million and that at least one third of the amount consists of a donation or money acquired through voluntary work.

The consultation period expires tomorrow. This VAT exemption came into force in 2010 and has been extended a few times since then.

Translated by prosa.fo