VAT

Danish VAT legislation is based on an EU VAT Directive, and the VAT rules are complex. Whether SDU is required to charge VAT on the participation fee for an event depends on the type of event.

SDU is required to charge 25% Danish VAT on the participation fee for the following types of events:

• Academic conferences and seminars
• SDU’s Annual University Celebration
• Social events.

SDU is not required to charge Danish VAT on the participation fee for the following types of events:

• Programme activities that generate student FTE income for SDU
• Courses
• SDU’s employee courses
• Events organised by AEU, with participants from SDU, other Danish universities and university colleges (within the same ministerial portfolio)
• Academic events attended exclusively by students at SDU.

As a general rule, input VAT paid in Denmark is not an expense for SDU. This is because SDU initially pays the VAT amount to the supplier of the goods or services but then deducts the Danish VAT amount in SDU’s VAT accounts.

However, the general rule does not apply to the purchase of the following goods and services, among others, where SDU is either unable to deduct the VAT or can only deduct a portion of it.

• Food and drink at restaurants, conference venues, cafés, cafeterias and similar establishments where the food is processed/prepared
• Purchases settled through the travel and expense reimbursement system zExpense
• Expenses relating to passenger cars (cars with white number plates)
• Fruit available to staff at SDU

SDU is entitled to claim a deduction for a quarter of the VAT amount on purchases of food at restaurants, conference venues and similar establishments. An example: For a restaurant bill of DKK 1,000 including VAT, SDU can claim a VAT deduction of DKK 50, so the actual cost is DKK 950.

The amount is calculated as follows: On an invoice for DKK 1,000 including VAT, the VAT amount is DKK 200. Of this, SDU can claim a deduction of ¼, i.e. DKK 50.

If, as the organiser of an event on behalf of SDU, you need to procure goods or services abroad for use at the event, we encourage you to contact a procurement officer or an ERP finance officer in your unit. In many cases, the purchaser or the ERP finance officer can help you ensure that SDU does not end up paying foreign VAT on purchases made outside Denmark.

There are also a number of goods and services that are exempt from VAT. This applies, for example, to healthcare, education and passenger transport. If VAT has not been charged on an expense receipt, SDU cannot claim a VAT deduction.