VAT GUIDE IN DENMARK
DENMARK VAT GUIDE FOR BUSINESSES
VAT in Denmark is a broad-based consumption tax levied on most goods and services at each stage of the supply chain. Administered by the Danish Customs and Tax Administration (SKAT), VAT is a key component of Denmark’s tax system and is governed primarily by the Danish VAT Act, which implements the principles of the EU VAT Directive.
Both domestic and foreign businesses may be subject to Danish VAT obligations if they carry out taxable activities in the country. This includes the requirement to register for VAT, charge VAT on sales, and comply with Danish invoicing and reporting rules.
Menu
VAT Rates
Zero rate: 0% for example for Newspapers, supplies to ships, supplies of gold to the Danish National Bank
Who Needs to Register for VAT?
A “taxable person” is any individual or entity engaged in business activities that involve making taxable supplies of goods or services, intra-Community acquisitions, or distance sales.
VAT Registration Thresholds in Denmark:
- Domestic businesses (Denmark-based):
Must register for VAT if annual taxable turnover exceeds DKK 50,000. - EU businesses (as of 1 January 2025):
Also benefit from the DKK 50,000 threshold, provided they notify their home country’s tax authority of their intent to rely on it. - Non-EU businesses (non-established in Denmark):
No threshold applies — VAT registration is required immediately upon making taxable supplies in Denmark.
Non-established businesses must register if they:
- Supply goods located in Denmark at the time of sale
- Make intra-Community acquisitions in Denmark
- Exceed distance sales threshold (may register via OSS)
- Provide B2C digital services (e.g., e-services, broadcasting, telecom) to Danish residents (unless below EU-wide threshold; OSS may apply)
- Provide certain B2C services not covered by reverse charge (e.g., real estate services)
Note: Most B2B services to Danish taxable persons fall under the reverse-charge mechanism, so VAT registration is typically not required for those.
VAT Obligations
Once registered for VAT in Denmark, businesses are required to issue VAT-compliant invoices for all taxable transactions. These invoices must include key details such as the supplier’s Danish VAT number, the invoice date and number, the names and addresses of both the supplier and the customer, a clear description of the goods or services supplied, the applicable VAT rate and amount, the date of supply, and an indication if the reverse charge mechanism applies.
Accurate and compliant invoicing is essential for fulfilling Danish VAT obligations and for customers to claim input VAT deductions.
VAT-registered businesses in Denmark must retain all relevant documentation—such as invoices, VAT returns, and accounting records—for at least 10 years. These records must be readily accessible for inspection by the Danish Tax Agency (Skattestyrelsen) during audits or reviews.
VAT Deadlines
VAT Return Filing Frequency:
- Monthly: For businesses with annual turnover over DKK 50 million.
- Quarterly: For turnover between DKK 5 million and DKK 50 million (monthly filing is optional).
- Half-yearly: For turnover under DKK 5 million.
Filing Deadlines:
- Monthly returns: Due by the 25th of the following month.
- Quarterly & half-yearly returns: Due by the 1st day of the third month after the end of the period.
- Special relief: For June, returns can be filed by 17 August.
VAT Payments:
- Must be made in Danish kroner (DKK).
- Due dates match the return deadlines: Monthly: By the 25th of the next month. Quarterly & half-yearly: By the 1st day of the third month after the return period.
- June payment relief: Allowed until 17 August.
Payment methods:
- Bank transfer (with VAT registration number as reference)
- Direct debit / Credit card
- Cash and cheques are not accepted.
- Early payments may be refunded by the tax authorities.
VAT Refund
Non-established businesses not registered for VAT in Denmark can recover Danish input VAT under certain conditions, similar to VAT-registered businesses.
EU Businesses (EU Directive 2008/9/EC): Eligible if no taxable supplies were made in Denmark during the refund period (excluding reverse charge supplies).
Claim requirements:
- Must be submitted in Danish, English, German, or Swedish.
- Minimum claim amounts:
- DKK 3,000 for periods under a year.
- DKK 400 for annual claims.
Non-EU Businesses (EU 13th Directive): No reciprocity required — refunds are available to businesses from any non-EU country, provided conditions are met.
Eligibility:
- Must not be established in the EU during the refund period.
- Must declare no taxable activities in Denmark requiring VAT registration.
Claim requirements:
- Deadline: 30 September of the year following the year of VAT incurred.
- Claim period: 3 months to 1 year (or less if it’s the remainder of the year).
- Minimum amounts: DKK 3,000 for shorter periods. DKK 400 for annual or year-end claims.
- Must provide proof of economic activity in the country of establishment.
- Claims can be submitted in Danish, English, German, or Swedish.
Penalties for non-compliance
Late VAT Registration:
No specific penalty for late registration.
However, if deemed gross negligence, a penalty of up to twice the VAT due may apply.
Interest is charged on retroactively due VAT, even if no penalty is imposed.
Late Filing and Payment:
DKK 65 per reminder for late VAT return submission.
If no return is submitted, tax authorities may file a temporary return and impose an extra duty of DKK 800.
Interest: 0.9% per month (2024), calculated daily, not income tax deductible.
Intrastat: Late/missing report = DKK 550 fine; continued failure may lead to police/legal action.
ESL: Late submission = DKK 65 penalty.
Errors in VAT Returns:
No penalty for errors corrected via self-disclosure, unless rules were clear (i.e., no excuse).
Audited errors: If considered excusable/common, correction required; otherwise, fines up to 2× the VAT wrongfully reported.
As of July 2023, interest is charged on all corrections resulting in extra VAT due, retroactive to the original deadline.
Interest: 0.9% monthly, compound interest (i.e., interest on interest).
Exemptions are rare and only granted in exceptional cases.
Changes to Registration Details:
No specific penalties for failure to notify the authorities about changes.
VAT Fraud:
Gross negligence or deliberate misreporting can lead to:
Fines or prison (up to 18 months under VAT law).
In severe cases, longer prison terms under the criminal code.
Tax advisors involved may also face fines or prosecution if they acted with gross negligence.
Common VAT Terms
- VAT (Moms)
- VAT Number (CVR-/SE-nummer)
- Taxable Person (Afgiftspligtig person)
- Tax Point / Time of Supply (Leveringstidspunkt)
- Input VAT (Indgående moms)
- Output VAT (Udgående moms)
- VAT Return (Momsangivelse)
- Reverse Charge (Omvendt betalingspligt)
- OSS – One Stop Shop (One Stop Moms)
- Distance Selling (Fjernsalg)
- Intra-Community Supply (EU-forsyning)
- Intra-Community Acquisition (EU-erhvervelse)
