VAT in Denmark
Denmark was one of the pioneering countries in Europe to implement a VAT system, replacing the traditional sales tax with the introduction of the first VAT Act on 3 July 1967. Over the years, the VAT legislation in Denmark has undergone various tax reforms.
The most significant transformation occurred when the local legislation was aligned with the Sixth EC VAT Directive, officially known as the Council Directive 2006/112/EC on the common system of Value Added Tax, effective from 1 January 2007.
Learn more about VAT in Denmark in our comprehensive guide.
Selling in Denmark?
Scope of Taxation
VAT is applicable to all transactions unless they fall outside the scope of the Danish VAT Act or are explicitly exempted. Taxable transactions are classified into two primary categories: “supplies” and “other.” The latter refers to situations that may not be considered supplies from an economic perspective but are treated as such for the purpose of tax neutrality (also known as “deemed supplies”). The most prevalent scenarios involving Danish VAT include:
- The supply of goods or services made in Denmark by a taxable person.
- The Intra-Community acquisition of goods from another EU Member State by a taxable person.
- Reverse-charge services received by a taxable person in Denmark.
- The importation of goods from outside the EU, regardless of the status of the importer.
Download the Danish VAT Guide
Denmark – General VAT information
| Tax Authority | Danish Customs and Tax Administration (Skatteforvaltningen) |
| VAT in local language | Merværdiafgiftsloven (Momsloven) or MOMS |
| Currency | Danish Krone (Kr) |
| VAT number format
|
DK + 8 digits |
| DK 12 34 56 78 | |
| VAT rates
|
Standard rate of 25% |
| Zero-rated (0%) and exempt | |
| Thresholds | |
| Registration | |
| Established | None |
| Non-established | None |
| Intra-Community acquisitions | DKK 13 million and above |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10,000 |
| VAT Group | Group registration is not mandatory and is instead an optional choice for taxpayers. |
| Voluntary Registration | The Danish VAT Act allows for voluntary registration under Section 49. To voluntarily register, the person must apply to the Tax Administration and commit to a minimum registration period of two years. |
| Recovery of VAT by non-established Businesses | Yes |
| Compliance Returns and Deadlines | |
| VAT Return | · 1st day of the 3rd month after the end of the quarter or half-year in case of the VAT returns are submitted on a quarterly or half-yearly basis. · 25th day of the month of the next month in case the VAT returns are submitted on a monthly basis. |
| Frequency | Monthly, Quarterly, Half-yearly |
| European Sales Listing | 25th day of the month following the end of the filing period |
| Intrastat | There are two sets of deadlines for reporting to Intrastat – an earlier deadline for larger reporters (Group 1) and a later deadline for smaller reporters (Group 2). |
| Electronic Invoicing | Electronic invoicing is generally not mandatory as per Article 66 of the VAT Order, but it is required for business-to-government (B2G) transactions according to BEK no. 206 of March 11, 2011. |
Last Updated: 27/12/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax