According to SKATs SL§ 6, subsection 1, letter a, your membership of Startup Central is categorized as an operating cost and thus fully deductible. What exactly does it mean when something is deductible?
When you run a self-employed business, you can get a deduction for the expenses associated with creating the company's income. It is important that you make sure to keep records of the expenses, which is a condition for the expense to be deductible.
A business deduction means that if you have a VAT registered business, you can deduct the sales tax, when you buy products or services used to manage the operations of your business or service customers. When reporting VAT, the purchase VAT is deducted from the sales VAT in the period in question - fully deductible, meaning that the full VAT can be deducted (25%).
The membership is deductible, as it is categorized as operating cost in the company, cf. SL§ 6, subsection 1, letter a. In other words, it is considered a cost that helps to create the company's revenue/future revenue.
If you have an income of more than DKK 50.000 annually, you can deduct your membership.
Example of the deduction
You purchase a membership at Startup Central for DKK 186.25/month. incl. VAT.
Your invoice will look like this:
Your membership fee thus costs "only" DKK 149, as you will receive your purchase VAT refund, then it is a cost of DKK 149 that affects the result for the year in a negative direction.
When the financial year is over you must pay corporate tax of 22%, if you are an ApS, of the year’s profit.
Example of posting a subscription:
In many accounting programs, such as Dinero, Billy and E-conomic, VAT is posted automatically if you post to the correct subscription account.
The posting can be done as follows:
If your accounting is set up correctly, this is the way you should be posting, and your postings will automatically be distributed as the example above.
In case of questions and clarifications, you are welcome to contact the author of this page Camilla Nyvang, from Randers Bogholderen.