RAB & VAT exemption
Bliv klogere på begreberne, de generelle regler og krav til RAB og momsfritagelse.What is the difference between RAB and VAT exemption?
If you want a professional career as a practitioner, we recommend that you become both VAT exempt and Registered Alternative Practitioner – and RAB. These are both official registrations that can optimize your earnings and competitive position.
Why do we recommend RAB?
There are no official requirements on what it takes to be and become a massage therapist or any other type of therapist. Similarly, titles such as masseur, body therapist, reflexologist etc. are not protected.
When you become RAB-registered, you gain official recognition from an industry organization, which increases your credibility with clients. The RAB title signals that you have undergone certain professional training and adhere to standards of quality and ethics. In other words, RAB registration acts as a seal of approval for your practice, which can give clients greater confidence in your services as they know that you meet a number of minimum requirements for education and professionalism.
Many private health insurance policies cover alternative treatments if the practitioner is RAB-registered. This gives you access to a wider range of customers who can have their treatments subsidized by the insurance, which can be a great benefit for both you and your clients.
Once you’re RAB-registered, you must undertake ongoing training to maintain your status. This ensures you stay up to date with the latest methods and knowledge in your field, which can improve the quality of your treatments. You’ll also have access to a network of other alternative practitioners through your industry organization, where you can share experiences, develop professional relationships and get support for your practice.
As a RAB practitioner, you are subject to a code of ethics and standards that ensure you adhere to professional behavior and good practice. This builds trust with your clients and ensures that you work within a framework that protects both you and your clients. Clients also have the option to complain if they experience dissatisfaction with a RAB practitioner, which provides further reassurance and professionalism in the industry.
When you are RAB-registered, you can market yourself with the RAB title, which can be an important selling point. The title shows that you are serious and have undergone approved training, which can attract more customers looking for treatments from a qualified practitioner. Your visibility can be increased through industry organizations’ own marketing channels, such as their websites, where potential customers can find RAB practitioners.
Becoming RAB-registered is a good investment in your career as an alternative practitioner. It increases your credibility, provides financial benefits such as insurance clients, and gives you access to a professional network and continued development. It also makes you stand out as a professional and serious provider of alternative treatments, which can attract more customers and increase your success in the market.
Why do we recommend VAT exemption?
You can be exempt from VAT on your treatments if the treatment is considered to be a healthcare service aimed at curing or preventing diseases and injuries. In Denmark, healthcare services are exempt from VAT if they are provided by an authorized therapist or someone else who performs treatments with a therapeutic purpose. To qualify for VAT exemption, SKAT has a number of requirements for your education, which you can see below.
As a VAT-exempt practitioner, you have two options. You can either maintain your prices and increase your profits as you no longer have to pay VAT on your treatments. You can also choose to give it to your customers at a cheaper price in the hope that this will bring you more customers and increase your revenue. Our recommendation is to maintain your prices and increase your profits. We have made an example of the calculation below where you can see the big difference it makes to the profit of your business.
Although it requires some training to become VAT exempt, it will pay off in the long run to sacrifice this in order to be VAT exempt and earn more. In addition, more training will develop you as a practitioner and thus increase your opportunities for more customers.
Watch the video below for a quick overview of the benefits of VAT exemption.
Are you struggling to get an overview of regulations, training requirements and registrations?
Don’t worry – you’re not the only one! The rules are different but have many similarities and are therefore often confused. Below are the rules and structures that a professional practitioner should follow.
At AM Academy, we help you whether you want to become RAB or VAT exempt. We create individual courses that are adapted to the education you already have. Book a non-binding conversation where we help you find out what you need and how to achieve it.
CALL 4453 5751
RAB
RAB stands for Registered Alternative Practitioner and is formed by a collaboration between the Ministry of Health and the Danish Health Authority – to which industry associations issue the registration, based on specific educational requirements, as well as requirements for good clinical practice.
Educational requirements
If you want to become RAB Registered, you must achieve 660 lessons, divided into the following subjects:
- 250 lessons Primary form of treatment
- Training in Basic Health Law
- Training in Clinical Guidance
- Teaching Psychology
- Teaching other alternative therapies
In addition, you will be expected to provide good treatment of your clients, as well as good day-to-day operations. You must comply with the industry association’s set of rules for Good clinical practice that requires you to keep up to date with your knowledge and professionalism.
Benefits of RAB registration
- RAB is considered a verification of your quality as a practitioner, as you demonstrate a high level of education.
- You keep your quality high through continuous training.
- You can receive clients who are reimbursed for treatment by private health insurance.
- You can receive clients who are subsidized for treatment by ‘sygesikring danmark’ (This does not apply to massage therapists, but to other therapists such as reflexologists, etc.)
- RAB allows for VAT exemption (however, you should be aware that not all treatments are VAT exempt).
Application for RAB registration
You need to contact your trade association and request RAB Registration.
Read more about procedures for RAB Registration on the Danish Practitioner Association’s website →
Do you therefore do not want to join a trade association, you cannot obtain your RAB registration.
VAT exempt Alternative Practitioner
According to section 13(1) of the VAT Act, alternative therapists (including masseurs) can be exempt from VAT. This assumes that 2 conditions are met before you can be VAT exempt. You must meet specific Training requirements and processing requirements.
Education requirements
If you want to become a VAT-exempt therapist, you must achieve 660 lessons, divided into the following subjects:
- 250 lessons Primary form of treatment
- 200 lessons Anatomy and Physiology
- 100 lessons Pathology and pharmacology
- 100 lessons Other healthcare training
- 10 lessons Clinic guidance
All courses that do not consist of practical exercises can be taken via E-Learning, provided the quality is equivalent to face-to-face courses. In practice, this means that all courses can be taken via E-learning offered by a school or similar educational institution – except Primary Treatment.
All courses must be completed with an attendance exam. You have documentation requirements and are therefore responsible for presenting diplomas that clearly state the subjects and number of lessons (Documentation must be in Danish or English. Diplomas in other languages must be translated into Danish or English)
Processing requirements
As a VAT-exempt practitioner, you will assess problems and perform treatments to treat or prevent disease or health irregularities.
Benefits of VAT exemption
You increase your income without increasing your workload – So you make more money for the same amount of work (see example below).
For example, you can potentially use the difference to reduce your treatment prices and make your business more competitive.
Applying for VAT exemption
Simply go to virk.dk and change your registration.
Read more here: SKAT – Rules for VAT exemption.
If you still find it a bit difficult to navigate, we have organized an information evening where you can learn more about the concepts and ask all your questions.
The next information evening is Wednesday, February 10, 2025 at 18-20
We also have a free online webinar where we go through the VAT and RAB rules and what they mean for you as a healthcare provider.
Wednesday, January 29, 2025 at 19-20
Earn more by becoming a VAT-exempt Alternative Practitioner.
Let’s say you have your own clinic and your hourly rate for a treatment is DKK 600,-
If we assume that you are 100% booked, this gives a total monthly revenue of DKK 72.000,-.
Let’s pretend that you have expenses of DKK 12,000/month for rent, furnishings, towels, oil, booking system, financial system, marketing, etc. This gives a monthly profit of DKK 60,000, which is used as a starting point in the calculation below;
Conclusion: For the same working hours, you will earn more if you qualify as a VAT-exempt Alternative Practitioner, because based on a profit of DKK 60,000, your taxable income will increase by: