How the new Danish VAT rules will be implemented by Koda

In December 2024, the Danish Parliament passed new VAT regulations, which take effect on 1 July this year. The amendment means that VAT will now apply to royalty payments. While the majority of Koda’s members will not be affected by the new rules, the introduction of VAT will still have consequences for some Koda members. For Koda’s customers, the new rules mean that Koda’s invoices will be subject to VAT.

Below, we briefly describe the overall consequences of the VAT changes for Koda’s customers and members.

How will the new VAT rules affect you?

The impact of the new VAT legislation will vary depending on your relationship with Koda as a rightsholder or a customer.

• Customers
  As of 1 July 2025, a 25% VAT charge will be added to invoices for our customers. For further details, we recommend that our customers visit our VAT FAQ (In danish)

• Composers and songwriters
  For most of Koda’s members, the new VAT legislation will have no practical impact, as they benefit from a general VAT exemption for artists.
  
  However, in certain cases, your distributions from Koda may still be subject to VAT; for example, if you are also an heir or own a music publishing company. If this applies to you, it is important that you seek further information and visit our VAT FAQ on Koda’s website.

• Music publishers
  From 1 July 2025, music publishers will see a 25% VAT charge applied to their distributions from Koda. It is essential that music publishers forward the relevant VAT amount to the Danish tax authorities (SKAT).
  
  There is one exemption, which applies if a music publisher’s total annual turnover on which VAT is payable is less than DKK 50,000. If you are a music publisher and this holds true of you, it is important to seek further information and visit our VAT FAQ on Koda’s website.

• Heirs
  As of 1 July 2025, heirs will find a 25% VAT charge applied to their distributions from Koda. If you are an heir, it is essential that you forward the VAT amount to the Danish tax authorities (SKAT). However, if your total annual VAT-liable income as an heir is less than DKK 50,000, you are exempt from VAT. If this applies to you, it is important that you seek further information and visit our VAT FAQ
  

Find answers to your questions about VAT on royalty payments/Koda distributions

For more information and answers to frequently asked questions about VAT on royalty payments/Koda distributions, please visit our VAT FAQ on the Koda website. The FAQ will be updated regularly.

Go to the FAQ

Please note that Koda cannot provide individual advice on VAT matters. If you have specific questions beyond the general answers provided in our FAQ, we recommend consulting an accountant or other qualified advisor.