Sales Tax (Output Tax)

When DTU sells goods or services, a 25% sales tax must generally be charged. This applies both in Denmark and for sales abroad, though with different invoicing requirements. However, there are exceptions where DTU’s services are exempt from sales tax. On this page, you can read about the typical rules, exceptions, and borderline cases.

When DTU sells a good or service, 25% sales tax must generally be charged. This applies when there is a consideration. That is, when DTU provides something of value in exchange for payment.

However, the VAT Act contains certain exceptions where the sale is VAT-exempt - e.g., education or certain transactions between public institutions.

It is important to distinguish between a sale (involving payment and consideration) and a grant/donation without consideration. In cases of doubt, a specific assessment should always be made.

On this page, you can read about the typical situations in which DTU must or must not charge sales VAT - e.g., for project grants, courses, conferences, and re-invoicing.

Note: If the sale is made to a foreign country, special rules apply to invoicing. You can read more on the page on international trade.

The following VAT exemptions are the most relevant for DTU:

  • Transactions between institutions under the same ministry (for DTU, the Ministry of Education and Research), cf. Section 9 of the VAT Act - see the list of institutions. Any supply between, for example, DTU and other universities, between DTU and the Ministry, or between DTU and any institution listed in the overview is thus VAT-exempt, even though the supply would have been subject to VAT if it had been delivered to a business or private individual.
  • School-based and academic instruction, all instruction subject to a fee schedule is VAT-exempt. Collections of materials prepared by instructors for specific classes are also VAT-exempt. In contrast, photocopies, textbooks, and similar teaching materials are subject to VAT.
  • Rental of real estate, unless the property has been voluntarily registered for VAT, which is the case for several of DTU's leases.

The examples listed below can provide an indication of whether VAT should be charged on a given project or grant. These are merely examples and do not constitute an exhaustive list. Furthermore, the specific designation itself is not decisive. The decisive factor will always be whether the transaction constitutes consideration or a donation (gift).

Examples of project grants where the general rule is that the project is VAT-exempt (a separate assessment must always be made):

  • Sponsored research (grant/gift/donation without consideration. See the section ‘Areas outside the scope of the VAT Act’ for a more detailed description)
  • Projects funded by institutions within the Ministry of Research and Higher Education
  • Educational projects (courses and conferences follow special rules; see the sections below on these topics)
  • Projects sponsored by EU authorities
  • UK10 projects

Collaborative projects where the funding body does not receive any consideration in return. All participants listed in the project do not charge VAT to each other. Subcontractors not listed must charge VAT.

Examples of project grants where the default is VAT liability:

  • Co-funded research/collaborative projects where the participating company, for example, gains access to DTU’s results prior to publication, uses DTU’s equipment, receives lectures at the company,
  • or receives consideration in any form whatsoever
  • Sale of self-funded research
  • Commissioned research
  • Consulting services
  • Projects involving consideration

Conferences are treated separately from projects and courses. They can be divided into the following categories:

  • Conferences that primarily consist of teaching/lectures are VAT-exempt
  • Conferences that primarily consist of knowledge sharing/workshops are subject to VAT
  • Conferences where DTU is the primary host are subject to VAT

Re-invoicing can be carried out according to two models:

Re-invoicing

The invoice has been issued to DTU, and the amount has been expensed. When re-invoicing, VAT must be added to all original net amounts (amounts excluding VAT). This also applies to amounts that were originally VAT-exempt, such as postage, insurance, etc. The invoicing should be viewed in such a way that it would make no difference whether the entire amount had been invoiced as a ‘consulting service’ or similar, or whether the various amounts are itemized.

Expense Account

The invoice must be in the name of the final recipient, i.e., the invoice must not be addressed to DTU. Additionally, the amount must be posted to an expense account. It must not be recorded as an operating expense in DTU’s accounts. If these conditions are met, the re-invoicing must be identical to the original invoice. Amounts including VAT must have VAT added; amounts excluding VAT must be invoiced without VAT. The original supporting documents must be submitted whenever possible.

Contact

Christian Landsgaard Finance and Accounting

Updated 16 juni 2026