Extension of six months to the reduced VAT – What goods and services it concerns

Reduced until 31 December 2022, VAT will be on coffee and non-alcoholic beverages in restaurants, public transport tickets, cinema tickets, sports tickets, dance schools and gyms. The period of application of the reduced VAT rates normally expired at the end of June, but with a provision included in a new bill of the Ministry of Finance that was put to public consultation, the application of the reduced VAT rate on goods and services is extended for another six months.

Specifically, Article 35 of the bill, which is in public consultation, provides for the maintenance until the end of the year:

– reduced VAT rate 13%, for non-alcoholic beverages of DK EX2202 and carbonated waters of DK EX2201, of par. 51 of Annex III of the VAT Code, as well as

– for movie tickets,

– for the carriage of persons and their luggage,

– for sports tickets,

– for tickets (right of entry) to zoos,

– for catering services,

for services provided by gyms, and

– for the services provided by dance schools of Annex III of the VAT Code.

According to the Ministry of Finance, the extension of the application of the reduced VAT rates. in the above goods and services is considered appropriate, taking into account the continuing conditions of hardship in the economy due to the COVID-19 coronavirus pandemic and the energy crisis.