In 2025, VAT will be introduced on the rights fees charged to providers of e.g. radio, TV and festivals.

The government is aware of the inconvenience caused to Danish artists as a result of the change in the VAT Act and has therefore allocated DKK 45 million to artists.

Therefore, the Danish Artist Association is pleased that politicians are allocating funds for artists who may be affected by the new rules.

"Although the new tax will not directly affect artists, it will affect the cultural food chain. That's why it's both right and good that skilled cultural policy spokespersons show understanding and support for allocating funds to mitigate the consequences. We estimate that this financial support will be needed for several years to come. The next step is for us to work together on the distribution of the money. Here, the union will prioritise that the funds are ultimately allocated to the music artists," says Sara Indrio, chairperson of the Danish Artist Association.

The Ministry of Culture expects to have a concrete model for how the subsidy will be paid out in spring 2025.


New VAT on rights management

The new law change does not directly affect the individual artist, musician or performing artist. Artists are still exempt from VAT when receiving rights revenue. VAT must be collected downstream when others licence the work and rights of performers.

The proposal exempts artists because it is a smaller version of a previous bill on VAT on rights at all levels. It was taken off the table two years ago after solid arguments from, among others, the Danish Artist Association against imposing cumbersome VAT accounting on close to 100,000 Danish rights holders.

Read more about the background to the change in VAT law here 

New VAT rules will hit especially hard

  • TV production companies
  • Organisations that are exempt from VAT - e.g. festivals, churches, and non-commercial local radio stations
  • TV package providers
  • Heirs of rights