Denmark’s tax authorities plan to apply value-added tax to mind sports such as chess, bridge, and backgammon from January 1, 2026. This decision follows a European court ruling from eight years ago that treated contract bridge as subject to VAT and rests on the view that mind sports do not qualify as sport for tax purposes.
Concerns from Mind Sports Organizations
The Danish Chess Union, working alongside the Danish Bridge Federation and other mind sports bodies, has tried to persuade the tax agency, the finance minister, and lawmakers to change course, but without success so far. The organizations are now stepping up their efforts through opinion pieces, letters, and direct outreach to tax and culture spokespersons in Parliament. They also aim to bring the case before the Danish Tax Council, which has the authority to overturn the agency’s decision, although a hearing may not be possible until 2026.
In the meantime, the tax agency has scheduled a technical briefing on October 7 to explain how the VAT scheme will be administered. Representatives of the Danish Chess Union, including its treasurer Poul Guldbæk Olesen, plan to attend to clarify which revenues will be taxable, which costs can be deducted, and what the accounting and reporting requirements will entail for the union, its regional associations, and local clubs.
Clubs warn that the change would effectively force a 25% rise in membership fees if the decision stands, without any added benefits. They argue that the increased administrative workload could make it harder to recruit volunteer boards, potentially leading some clubs to shut down.
Once the implications are clear, the Danish Chess Union intends to invite all clubs and regional associations to an online information meeting, providing an opportunity to ask questions. The invitation will be announced on the union’s website in due time.