VAT on the invoice

VAT follows the rules of SKAT, the Danish tax authority, and you choose the VAT. heyArtist works out the amounts, prints the right wording on the invoice and keeps you within the fixed rules — but heyArtist never decides which VAT a sale should carry. If in doubt, read SKAT’s rules on VAT or ask your accountant.

The screenshots show heyArtist in Danish; the labels are named in English here as they appear when you switch the app to English.

VAT per line

Each line on the invoice has its own VAT choice under VAT:

Choice	When	How
25% VAT	Ordinary taxable sales, such as frames and shipping.	25% of the line’s amount.
Artist VAT (25% of 20%)	Only for the first sale of your own works of art — SKAT decides which works and sales qualify. In Danish: kunstnermoms.	The taxable amount is 20% of the sales price, and the VAT is 25% of that. In practice 5% of the price.
VAT exempt	Sales exempt from VAT under the Danish VAT Act.	No VAT.

A new line starts with the choice you used on the last line you saved. Check it on every line — a painting and its frame often carry different VAT.

If you mix lines with different VAT, the summary shows each part separately: VAT 25% of the ordinary amount, Taxable amount for works of art (20% of the works’ price**)**, VAT on works of art and Total VAT.

On the issued invoice and the PDF, lines with artist VAT are marked Artist VAT, and the calculation is explained below the lines.

The tax scenario

The Tax scenario applies to the whole invoice and depends on who you sell to. Each scenario prints its own wording on the invoice.

Scenario	Used when	VAT
Denmark – VAT as chosen per line	You sell in Denmark.	As chosen on the lines.
EU Consumer – seller’s domestic VAT (25%)	You sell to a private person in another EU country, and your total sales to consumers in other EU countries are below the EU threshold of €10,000.	Danish VAT. The invoice states that the threshold has not been exceeded.
EU Business – Reverse Charge (0%)	You sell to a business in another EU country.	0%. The buyer accounts for the VAT. Requires the buyer’s VAT number.
Export – UK / Outside EU (0%)	You sell to a buyer outside the EU.	0%.
VAT Exempt (0%)	The whole invoice is exempt.	0%.

When you take the recipient from a contact, heyArtist suggests a scenario from the contact’s country and VAT number: Denmark gives Denmark, another EU country with a VAT number gives EU Business, without one EU Consumer, and a country outside the EU gives Export. The suggestion is only a suggestion — choose what fits.

An old invoice may show the scenario Artist VAT (old invoice). It can no longer be chosen; artist VAT is now chosen per line.

VAT registration

Only a VAT-registered business may charge VAT on an invoice. Whether the account is VAT registered is set under Settings → Business:

• VAT registered — tick it if the business is registered.
• VAT registered from — the date the registration applies from. If it is empty, the registration applies to every invoice date.
• An Individual (CPR) can neither have a CVR number nor be VAT registered.

Note

Only a manager can change the business details.

heyArtist looks at the invoice date: if the account was not VAT registered on that date, no VAT is charged, whatever the lines say. The invoice is issued as VAT exempt with the wording The seller is not VAT registered – no VAT has been charged. The form says that the tax scenario has been set to exempt, so you see it before you save.

Your choice on each line is still saved. It is used to keep track of SKAT’s limits — see below.

If you saved a draft with VAT and changed the VAT registration afterwards, heyArtist refuses to issue it. Open the draft and save it again, and it is recalculated.

SKAT’s limits for VAT registration

Under SKAT’s rules you must register for VAT when, in a calendar year, you sell more than:

• DKK 350,000 in first sales of your own works of art, or
• DKK 50,000 in other taxable turnover.

If the account is not VAT registered, heyArtist keeps an eye on this for you. When you approach one of the limits (80%) or have passed it, a message appears at the top of the Invoices page, such as Your sales of your own works of art this year are … SKAT requires VAT registration once they exceed DKK 350,000.

The figures are based on your issued and paid invoices in DKK this year and on the VAT you chose on each line: lines with artist VAT count towards DKK 350,000, lines with 25% towards DKK 50,000, and exempt lines count towards neither. The message is for information only. heyArtist never registers you and never stops an invoice because of it — the decision is yours, together with SKAT.