VAT in Denmark:
Key VAT Information

Value Added Tax (VAT), known as moms (merværdiafgift) in Denmark, is a consumption tax levied on the sale of goods and services. It is applied at each stage of the supply chain where value is added, from production through to the final sale to the consumer.

Standard rate (25%): applied to almost all goods and services. Unlike most EU countries, Denmark does not apply a reduced rate. Zero rate (0%): certain transactions, such as the sale of newspapers, intra-Community supplies and exports outside the EU, are exempt or taxed at 0%.

Arrivals (introductions from EU countries): DKK 42,000,000 per calendar year. Dispatches (deliveries to EU countries): DKK 11,800,000 per calendar year. Companies exceeding these thresholds must submit INTRASTAT returns providing statistical data on the movement of goods.

INTRASTAT returns: mandatory statistical reports for companies exceeding the INTRASTAT thresholds, detailing the movement of goods between Denmark and other EU countries. EC Sales List (EU-salg uden moms): a report required for companies supplying goods or services to VAT-registered customers in other EU countries, listing all intra-Community sales.

Monthly returns: annual turnover above DKK 50 million. Quarterly returns: turnover between DKK 5 million and DKK 50 million. Half-yearly returns: turnover below DKK 5 million. Newly registered companies generally file quarterly returns, with the authority able to adjust the frequency based on actual turnover.

Under the Danish Bookkeeping Act (bogføringsloven), companies must keep their records for 5 years from the end of the financial year, in particular: invoices issued and received, accounting records, import and export documents, as well as VAT returns and related correspondence. These documents must remain accessible to the tax authorities on request. An exception extends retention to 10 years for documents relating to real estate subject to VAT adjustment.

Invoices must include: the full names and addresses of the supplier and the customer, the supplier's Danish VAT identification number, the invoice date and a unique invoice number, the quantity and description of the goods or services, the delivery date (if different from the invoice date), the net amount per item and the total net amount, the applicable VAT rate and the corresponding VAT amount, as well as the total amount payable (VAT included).

Companies can recover Danish VAT paid on their business expenses by: including it in their periodic VAT returns (for companies registered for VAT in Denmark); submitting a claim through the EU VAT refund mechanism (8th Directive, for EU companies not registered in Denmark); or using the 13th Directive refund procedure (for non-EU companies). Denmark does not require a reciprocity condition.

EU companies can generally register directly for Danish VAT. Non-EU companies may need to appoint a liable representative established in Denmark, particularly for import operations. This representative handles VAT obligations on behalf of the company: registration, returns and communication with Skattestyrelsen.

Liable representative: legally responsible for VAT obligations, potentially jointly and severally liable for any unpaid VAT; this mainly concerns non-EU companies. Fiscal agent: acts on behalf of the company for VAT compliance without being jointly and severally liable; it is generally used by EU companies operating in Denmark.

Registration is carried out through the Business in Denmark (Virk) portal, using form 40.112 "Registration of Non-Danish Company". You must provide a certificate of incorporation, the VAT number of the country of origin, a description of the activity, an estimate of turnover and, where applicable, the representative's contact details. The company is assigned a Danish CVR/SE number with the Erhvervsstyrelsen and Skattestyrelsen.

E-commerce companies selling goods to consumers in Denmark must apply Danish VAT once their distance sales exceed the threshold of €10,000 within the EU. Since 1 July 2021, the One-Stop Shop (OSS) system allows VAT to be declared and paid for all sales within the EU through a single registration.

OSS simplifies VAT reporting for companies selling goods and services across the EU: it allows a single registration covering all member states; companies file a single quarterly OSS VAT return for all their sales to EU consumers; the scheme applies to distance sales of goods and to certain supplies facilitated by electronic interfaces.

Imports: goods imported into Denmark from non-EU countries are subject to import VAT and, where applicable, customs duties. Import VAT can be recovered through the VAT return if the company is registered in Denmark. Exports: exports to non-EU countries are exempt from VAT, but proof of export must be kept.

Storing goods in Denmark generally triggers an obligation to register for Danish VAT. Companies holding stock in Denmark for sale or distribution must register for VAT, charge Danish VAT on local sales and comply with local reporting obligations.