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VAT Rates in Denmark

Updated Danish VAT rate tables

A taxable supply refers to the provision of goods or services that are subject to a VAT rate, including supplies that are zero-rated. In Denmark, sellers who are registered for VAT are obligated to apply the appropriate VAT rate to their goods and services and collect the corresponding tax for remittance to the Danish tax authorities through a VAT filing system.

Since 1992, Denmark has implemented a standard VAT rate of 25% without any reduced rates. Certain supplies, as outlined in Sections 34-36 of the Danish VAT Act, are zero-rated, such as exports and specific international services.

Learn more about VAT rates in Denmark on our comprehensive guide below.

VAT guide Denmark

Danish VAT Rates

Under Section 13 of the Act, certain supplies of goods and services, such as financial services, education, and medical services, are classified as “exempt.” This means that no VAT is applicable to these supplies. However, unlike zero-rated supplies, taxpayers cannot claim an input VAT deduction for VAT expenses incurred in relation to exempt supplies.

 

Standard VAT rate

The taxable supply refers to the value of goods or services sold that are subject to VAT. In general, VAT is charged on all goods and services that are sold within Denmark by taxable persons, including businesses that are registered for VAT in Denmark. However, certain goods and services may be exempt from VAT or may be subject to reduced rates of VAT.
Rate Good or Services
25% All other taxable goods and services

Reduced VAT rates

In Denmark, there is no reduced VAT rate system like in some other countries. There are a few exceptions which are subject to a reduced VAT rate of 0%.
0% Zero rated
  Goods that are sold to a buyer in a foreign country and transported outside of Denmark
  Supplies of goods or services to other EU Member States if the recipient is registered for VAT in their home country (known as intra-Community supplies).
  Services that are directly related to the export of goods, such as transport and insurance services
  The supply of newspapers, whether in physical or electronic form, that are published at least once a month
  Services that are related to goods that are temporarily imported into Denmark for processing or repair before being re-exported
  The sale of gold to the Danish Central Bank
  Supplies of vessels and their related equipment for commercial use
  Supplies of fuel, equipment, and services related to ships that are used for international voyages
  Supplies of services, fuel, and supplies related to commercial aircraft operating on international routes
  Supplies to diplomats, officials, and certain international organizations

Exempt From VAT

Exemptions for rentals, leases, and sales of real estate are subject to certain conditions, such as excluding hotels and short-term rentals. Additionally, providing a new building with or without land is also exempt.
Certain financial services such as insurance, reinsurance, loans, and management of special investment funds including pensions meeting certain requirements are exempt from VAT.
Postal services and passenger transport
Betting, gaming, and lotteries
Education and tuition in schools, including higher education, vocational and professional training, as well as languages, music, and physical education
Hospital and medical services, chiropractic services, physiotherapy, dental services, as well as burial and cremation.
Subscriptions to trade unions, professional and public interest bodies. Additionally, services rendered by independent groups carrying out educational, social care, non-profit, patriotic, and cultural activities, as well as transportation for sick or injured people, charitable events, and charity shops selling donated goods.
Sports, sports competitions, and physical education
Goods and services provided in connection with charitable fundraising events
Certain supplies of goods or services by charities, cultural services, activities of authors, composers, and artists, as well as supplies of goods when the supplier was not entitled to an input tax credit in relation to the acquisition cost
Investment of gold
Non-commercial activities of public broadcasters such as educational programming or coverage of cultural events.

 

Numerous nations introduced temporary modifications to their VAT rates in response to COVID-19. VAT rate reductions on products and services sold by companies that were particularly hit hard by the pandemic’s economic fallout.

To learn more about the implications of COVID-19 in Denmark and get informed on the latest VAT news visit our Global VAT news page by clicking here.

 

 

 

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

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