What is momsfritagelse (VAT exemption)?

In short

Momsfritagelse means a service is exempt from VAT. That covers healthcare, education, passenger transport, insurance and most financial services, among others.

In practice

Sell only VAT-exempt services and you must not register for VAT — but you also cannot deduct input VAT, and you often pay payroll tax (lønsumsafgift) instead. Businesses under DKK 50,000 in revenue over 12 months can also choose not to register.

Go deeper: Danish VAT for beginners: how VAT works in your business

Related terms

• Moms (Danish VAT)
• Lønsumsafgift (payroll tax)
• Momsregistrering (VAT registration)
• See every term in the dictionary

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