Denmark has announced several important updates to the VAT changes affecting education and recreational activities, following the broader reforms announced in 2025 (for prior coverage, see the article in the October 2025 issue of Indirect Tax News).
The latest developments include confirmation of a zero-rate VAT on the sale of books from 1 July 2026, a landmark ruling recognising the game of bridge as a VAT-exempt cultural activity and a postponement of VAT liability for mind sports.
As part of the 2026 National Budget package, Denmark will introduce a zero rate VAT on the sale of books effective 1 July 2026. The zero rate will apply to physical books, e-books and audiobooks, while preserving the supplier’s right to deduct input VAT.
Whether a product qualifies as a “book” will depend primarily on whether it carries an ISBN number and whether it could reasonably exist in physical book form. By contrast, streaming and subscription-based access to books, such as audiobook platforms, will remain subject to VAT, as these services are treated as the supply of a right of use rather than the sale of a book.
On 16 December 2025, the Tax Council issued a binding ruling confirming that bridge constitutes a cultural activity forming part of Denmark’s cultural heritage. As a result, income from bridge clubs, including membership fees and tournament fees, may be exempt from VAT under the cultural exemption.
This ruling represents a notable shift from the Tax Agency’s earlier position, which had concluded that mind sports could not qualify for VAT exemption based on CJEU case law requiring a physical element for classification as a “sport.”
In response to the Tax Council’s ruling, the Tax Agency has postponed the planned introduction of VAT on mind sports such as bridge, chess and backgammon. These activities may continue to be treated as VAT-exempt until 1 January 2027, while the authorities assess whether additional mind sports may also qualify VAT-exempt cultural activities.
From a practical perspective, this postponement provides temporary certainty for many volunteer-based organisations that would otherwise have faced immediate VAT registration and compliance obligations.
These updates reflect substantive changes—both in expanding the scope of zero-rated supplies with input VAT credit and in further delaying VAT obligations for mind sports.
Potentially affected organisations should begin now to prepare for the operational impact of zero-rate VAT on book sales from July 2026. One practical consequence is that gift cards may increasingly be treated as multi-purpose vouchers, shifting the VAT point to redemption. Organisations should also evaluate whether their activities may qualify as cultural activities eligible for VAT exemption, particularly as the authorities continue to refine the boundaries of this category.
Kasper Harvey Hansen
Louise Eide Hartung
BDO in Denmark
The latest developments include confirmation of a zero-rate VAT on the sale of books from 1 July 2026, a landmark ruling recognising the game of bridge as a VAT-exempt cultural activity and a postponement of VAT liability for mind sports.
Zero-Rate VAT on Books
As part of the 2026 National Budget package, Denmark will introduce a zero rate VAT on the sale of books effective 1 July 2026. The zero rate will apply to physical books, e-books and audiobooks, while preserving the supplier’s right to deduct input VAT.Whether a product qualifies as a “book” will depend primarily on whether it carries an ISBN number and whether it could reasonably exist in physical book form. By contrast, streaming and subscription-based access to books, such as audiobook platforms, will remain subject to VAT, as these services are treated as the supply of a right of use rather than the sale of a book.
Bridge Recognised as Cultural Heritage
On 16 December 2025, the Tax Council issued a binding ruling confirming that bridge constitutes a cultural activity forming part of Denmark’s cultural heritage. As a result, income from bridge clubs, including membership fees and tournament fees, may be exempt from VAT under the cultural exemption.This ruling represents a notable shift from the Tax Agency’s earlier position, which had concluded that mind sports could not qualify for VAT exemption based on CJEU case law requiring a physical element for classification as a “sport.”
Postponement of VAT Liability for Mind Sports
In response to the Tax Council’s ruling, the Tax Agency has postponed the planned introduction of VAT on mind sports such as bridge, chess and backgammon. These activities may continue to be treated as VAT-exempt until 1 January 2027, while the authorities assess whether additional mind sports may also qualify VAT-exempt cultural activities.From a practical perspective, this postponement provides temporary certainty for many volunteer-based organisations that would otherwise have faced immediate VAT registration and compliance obligations.
BDO Take
These updates reflect substantive changes—both in expanding the scope of zero-rated supplies with input VAT credit and in further delaying VAT obligations for mind sports.Potentially affected organisations should begin now to prepare for the operational impact of zero-rate VAT on book sales from July 2026. One practical consequence is that gift cards may increasingly be treated as multi-purpose vouchers, shifting the VAT point to redemption. Organisations should also evaluate whether their activities may qualify as cultural activities eligible for VAT exemption, particularly as the authorities continue to refine the boundaries of this category.
Kasper Harvey Hansen
Louise Eide Hartung
BDO in Denmark