VAT compliance and reporting rules in Denmark 2024
Below is summary of the major rules provided under Danish VAT rules (Momsloven, ‘VAT law’), plus adoption of EU VAT Directive provisions. Check our country VAT guides for other jurisdictions.
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Denmark VAT country guide
| Highlights | Local term | Merværdiafgift (Moms) |
| VAT Rates - standard | 25% | |
| Rates news | 2024 new streaming tax | |
| VAT Rates - reduced | 0% | |
| VAT number format | DK 12345678 | |
| Registration threshold | DKK50,000 (approx €6,500) per annum. Nil for non-residents; DKK74,415 (approx €9,600) per annum for pan-EU digital services and goods OSS return. Intra-community acquisitions DKK80,000 (approx €10,400) per annum | |
| VAT Group | Yes, voluntary | |
| VAT recovery foreign businesses | Yes | |
| Fiscal Representative | Yes, for most non-EU established businesses VAT registration | |
| Currency | Krone, DKK | |
| Administration | Introduction | VAT was introduced into Denmark in July 1967. It joined the European Union in 1973 |
| VAT laws | Momsloven, 'VAT law'. Also EU VAT Directive which takes supremacy as part of EU membership | |
| Tax Authorities | Danish Customs and Tax Administration (Skatteforvaltningen), part of the Ministry of Taxation. Formerly SKAT. Copenhagen Business Authority office for non-residents. | |
| VAT Rates | Standard rate | 25% |
| Rates news | 2024 new streaming tax | |
| Reduced rates | n/a | |
| Zero-rated | Intra-community passenger travel by air and sea; Exports and intra-community supplies of goods; gold to central banks; services related to vessels and aircraft; newspapers; burial services; charities; cultural activities | |
| Exempt | Education; financial services; health, hospital, and social welfare; public postal; letting immovable property; betting and gambling; welfare services; international passenger transport; sports charities | |
| Scope of VAT | Scope of VAT | Provision of domestic taxable goods and services; EU imports; intra-community acquisitions; Distance selling of goods B2C (OSS or IOSS); receipt of services or goods via the reverse charge |
| Time of supply | Goods & Services (general rule) | At delivery of goods or provision of services. Invoices should be issued at same time (or shortly afterwards). In the case of prepayments, the tax point is triggered for the value of the invoice only. |
| Reverse Charge | VAT period when supply of service made - or time of invoice. | |
| Continuous Services | Goods is the end of the month of delivery takes place. The end of the VAT return period where invoice has not already been issued for services. | |
| Imports | At point of clearance through Danish customs into free circulation. Deferred import VAT is an option (see separate). | |
| Goods on approval and return | Either: time of sale to customer (with supporting invoices) or regular time of supply. | |
| Registration | VAT registration threshold | DKK50,000 (approx €6,500) per annum. Nil for non-residents; DKK74,415 (approx €9,600) per annum for pan-EU digital services and goods OSS return. Intra-community acquisitions DKK80,000 (approx €10,400) per annum |
| Voluntary VAT registration | Yes, for resident businesses only | |
| VAT number format | DK 12345678 | |
| VAT Group | Yes, voluntary. Two or more linked companies take on a single VAT identity (number), and transactions between members are exempted from VAT. A single consolidated return is submitted by members, with one nominated member being responsible. All members are joining liable for VAT. Must be residents only and VAT registered. Non-registered entities may join group if fully owned by another member of the group. Non-residents are excluded. | |
| Non-residents | No material difference. Fiscal Representative required for most non-EU businesses. No registration threshold. | |
| Fiscal Representative | Non-EU businesses are obliged to appoint a Fiscal Representative. Norway, Iceland and the UK are excused from this requirement. The Fiscal Representative is jointly and severally liable for their client's VAT. For all foreign entities, Danish tax office has right to request deposit equal to three months' VAT liability | |
| Digital Services | Denmark participates in the EU single One Stop Shop (OSS) VAT return for digital, telecoms and broadcast services. This was formerly the MOSS regime until 30 June 2021 | |
| Pre VAT registration costs | Yes, going back three years. Will be assessed to ensure related to business purpose. | |
| VAT Invoices | Issuance | No specific guidance, but should be at time of supply. For intra-community supplies, should be by 15th of the following month. Invoices not required for distance selling OSS transactions. |
| Content | Date; unique sequential invoice number; name and address of supplier and customer; Customer VAT number for intra-community supplies or reverse charge; date of supply or advance payment if different from invoice date; Description, quantity or units etc of supply of goods or services; price per unit; taxable amount; VAT charged; rate (broken out if supplies at different rates); total; explanation if zero-rated supply. | |
| E-invoices | 2024 digital certified invoicing and bookkeeping | |
| Simplified invoices | Permitted for invoices not exceeding DKK3,000. Can exclude customer details and include limited VAT calc info. Basic till receipts may be provided for retail transactions. However, any services exceeding DKK5,000 require a full VAT invoice | |
| Self-billing | Yes, permitted. Requires written agreement between supplier and customer, acceptance by supplier of each invoice. | |
| Retention of invoices | Five years. Electronic conversion and storage is permitted with confirmation with tax authority. Paper records must be kept long term in Denmark. Electronic records may be stored outside of Denmark. | |
| FX rules | Foreign currency invoices are permitted. However, VAT amount due should be stated in DKK or €. The tax authority's exchange rates or European Central Bank should be used for translation. | |
| Invoice corrections | Credit or debit note with clear reference to original invoice required. | |
| Compliance | Right to deduct | Excluded: Staff non-business related food, entertainment; Staff housing costs; business gifts exceeding DKK100; business entertainment (hotels and restaurants excluded); staff allocated motor vehicles; 50% of home phoneline |
| Call-off stock | Following the EU's 2020 Quick Fix harmonisation reforms, stock may be transferred from an EU state to an customer location/warehouse in Denmark without triggering a VAT registration and supply for a non-Irish supplier. Title has not passed until the customer takes the goods for production and sale. At which time a zero-rated transaction may be effected. This must happen within 12 months of the original movement | |
| Reverse Charge - B2B | Aside from regular B2B imports or intra-community supplies of services being zero-rated, the VAT liability shifts to the customer (reverse charge) in the following cases: non-resident supply even if the foreign supplier has a Danish VAT number. Domestic reverse charge; natural gas and electricity; scrap metals; mobile phones; games consoles; laptops and tablets; CO2 emission permits; telephony services (2024) | |
| Cash discounts | Discount should be applied before VAT calculation. Where discount for early payment, the full VAT should be still paid. A credit note may then be issued for the corrected VAT and consideration. | |
| Bad debt relief | Available on debts which clearly shown to be irrecoverable. For debts above DKK3,000, some proof of liquidation, bankruptcy or similar is required as proof. The debt should have been fully written off in the accounting records. Entry for VAT should be processed through VAT return | |
| Import VAT deferment | Permitted through government's warranty regime, or instead providing a bank guarantee. This enables the import VAT to be reported through the VAT return as a reverse charge and avoid any cash payment. Exemption is allowed in the case of an import and immediate (30 days) intra-community supply. This requires a Danish VAT number, and the importer must inform the Danish tax office in advance of this number - including Fiscal Representative details for non-EU businesses | |
| VAT warehouse | The Danish authorities allow import into authorised bonded warehouses for certain goods (per EU VAT Directive) without payment of VAT and customs. This requires a Danish VAT number. Transactions within the warehouse are typically zero-rated for VAT. | |
| Supply & install | Non-resident providers of install of goods services should use the reverse charge (shifting VAT responsibilities to their business customers) and do not need to VAT register. | |
| Use and enjoyment services | Where non-EU businesses provide following services B2C, VAT due in Denmark: electronic, telecoms and broadcast; IP-related; consulting; financial services; supply of staff; natural gas and electricity; advertising | |
| Capital goods adjustment period | Movable property: five years. Immovable property: ten years | |
| Non-residents VAT recovery | EU businesses may apply for Danish VAT reclaims through the electronic portal of the tax authorities of their company of residency (8th Directive). Quarterly claims above DKK3,000 permitted, with final claim above DKK400 by 30 Sept of following year. Non-EU businesses must submit a paper-reclaim with supporting invoices via the Irish authorities directly (13th Directive). Denmark does not require a reciprocal agreement with the country of residence of the claimant. Non-EU businesses do not have to appoint an Danish resident Fiscal Representative for the reclaim process | |
| VAT on Digital Services | Denmark follows the EU VAT on digital services regime, introduced in 2015. This includes participation in the One-Stop-Shop (OSS) single EU VAT return (formerly MOSS until 30 June 2021) | |
| Live events | N/a | |
| Distance selling threshold for goods | Nil. Following the EU ecommerce VAT package reforms from 1 July 2021, local Danish VAT must be charged on all sales by non-Danish EU e-commerce sellers shipping from within the EU. Imported distance sales not exceeding €150 liable to Danish sales VAT with IOSS return option | |
| Cash accounting scheme | N/a | |
| VAT registered cash tills | N/a | |
| Statute of limitations | Three years unless evidence of fraud | |
| Other | N/a | |
| VAT Returns | Frequency | Annual Turnover: below DKK5m (approx €650k) bi-annual VAT returns; below DKK50m (approx €6.5m) quarterly VAT returns; above DKK50m (approx €6.5m) monthly VAT returns. Most new registrations are places on quarterly VAT returns initially. |
| Filing method | Electronic, only. 'TastSelv Erhverv'. Payments can be processed through Danish 'EasyAccount' | |
| Deadlines (inc payments) | Monthly: 25th of the following month. Quarterly: 1st of the third month following quarter end. Bi-annual: 1st of third month following period end. Payments due by same deadlines. In the case of holidays or weekends, the following working day applies. | |
| VAT credits | Via VAT return with automatic repayment. This may however trigger a VAT audit. | |
| Corrections | Via corrective VAT returns. | |
| Non-residents | Largely same as resident. Requires Fiscal Representative for most non-EU traders. | |
| Other filings | European Sales Listing for goods and services supplies due each month by 25th of month following reporting period. Can be quarterly for quarterly VAT filers with sales not exceeding DKK400k in recent quarters. Intrastat monthly by the 10th of the following month for supply of goods above threshold: dispatches: DKK 11m; arrivals: DKK 22m. | |
| SAF-T | Danish SAF-T with digital bookkeeping | |
| Penalties & interest | DKK800 for late return and potential assessment. Potential DKK1,000 following any review of delayed filing. 0.7% daily interest on late VAT payments and/or underdeclared VAT with DKK65 charge for each reminder. Plus further fines of up to DKK10,000 once reviewed. | |
| B2C Distance Selling returns | Denmark participates in the One-Stop-Shop OSS pan-EU VAT return for distance selling, introduced in July 2021. |
