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VAT in Denmark

VAT Guide for EU countries within Europe

VAT in Denmark

Whether you’re a European or non-European company, establishing certain activities in Denmark may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Denmark.

If you deal with companies in Denmark, you may be able to claim a Danish VAT refund.

Here you can find the specifics of VAT regulations in Denmark, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.

Basic information

EU membership 1973
ISO code DK
VAT introduced in Denmark 1967
VAT name in Denmark Merværdiafgiftsloven- (Momsloven)
VAT ID format in Denmark DK99 99 99 99
Territories with special status in Denmark Faroe Islands, Greenland

VAT rates in Denmark

Standard VAT rate 25 %
Reduced VAT rate (1) n/a
Reduced VAT rate (2) n/a
Super reduced VAT rate n/a
VAT parking rate n/a
Zero VAT rate yes

Thresholds triggering VAT reporting obligations in Denmark

Intrastat threshold at introduction 7 200 000 DKK (+/- 936 000 EUR)
Intrastat threshold on dispatch 5 200 000 DKK (+/- 676 000 EUR)
Distance selling threshold As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.

Reporting frequency in Denmark

Intrastat declaration monthly depending on threshold
EC Sales List (ESL) declaration monthly, quarterly
VAT returns monthly
Reporting currency DKK

VAT-related penalties in Denmark

Failure to file a VAT return Penalty of 65 kroner for late filing, an additional penalty of 800 kroner for failure to file after notification by the administration.
Late payment of VAT Interest on arrears of 0.8% per month overdue.
Failure to report ESL/DEB Penalty of 65 kroner for late submission.

Useful links on VAT in Denmark

Tax Authorities in Denmark Tax authorities
Ministry of Finance in Denmark Ministry of Finance
Check a VAT number in Denmark Check a VAT number
EU VAT Guide EU VAT Guide
Denmark has been a member of the European Union since 1973 and of the Schengen Area, but not of the Eurozone.

Denmark has one of the world’s most service-oriented economies, with agriculture accounting for only 2% of GDP. Due to the small size of its domestic market, the Danish economy is highly dependent on foreign trade. Denmark exports a lot of its products thanks to specialised industry, eco-technologies, design and electronics. Its maritime and river transport is among the most powerful in the world.

Denmark was one of the pioneers of VAT, introducing it as early as 1967. The current Danish VAT Act (Momsloven) entered into force on 1st July 1994.
Anyone who supplies goods, undertakes Intra-Community acquisitions or services or other activities subject to VAT obligations in Denmark must register for VAT. When undertaking these activities it is essential you use a fiscal representative in Denmark.

The current VAT rates in Denmark are as follows:

  • Standard VAT rate: 25 %
  • Reduced VAT rate (1): n/a
  • Reduced VAT rate (2): n/a
  • Super reduced VAT rate: n/a
  • VAT parking rate: n/a
  • Zero VAT rate yes

Certain transactions in Europe may require registering for VAT and filingVAT returns in Denmark:

To check if your activities involve VAT obligations in Denmark, use our VAT simulator or contact us.

When do e-traders need to register for VAT in Denmark?

In Denmark just like in other European Union countries, e-traders must register for VAT:

  • when the overall threshold of EUR 10,000 for Intra-Community distance selling is exceeded and they have not opted to pay the VAT in Denmark via the One Stop Shop,
  • or when they hold a stock of goods in Denmark and must report the stock supply transactions.

What are the VAT obligations for e-traders in Denmark ?

In addition to VAT registration, e-traders must:

  • Apply the defined VAT ratesin Denmark: standard rate (25 %), reduced rates 1 and 2 (n/a and n/a).
  • Declare stock transfers between marketplaces‘ storage platforms, as well as the supply translactions for these stocks.
  • File periodic returns (VAT returns, intrastat, ESL), to ensure their VAT compliance in Denmark.

> Learn more about the VAT & e-commerce regulations and the VAT regime for logistics platforms in Europe.

Why identify yourself to VAT in Denmark?

You may need a VAT number in Denmark to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Denmark, use our VAT simulator or contact us.

VAT Danish is named Merværdiafgiftsloven- (Momsloven)and the VAT numbers in Denmark have the following structure: DK99 99 99 99.

How do I get a VAT number in Denmark?

The administrations in charge of in Denmark VAT are the following: Tax authorities, Ministry of Finance.

Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Denmarkyou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.

Companies with a VAT number in Denmark must complete and submit VAT returns in Denmark detailing all taxable income (sales) and expenses (costs), with the following periodicity: monthly.

Failure to comply with the deadlines imposed by the Danish authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.

These penalties are defined as follows in Denmark:

  • Penalties for failure to file a VAT return in Denmark: Penalty of 65 kroner for late filing, an additional penalty of 800 kroner for failure to file after notification by the administration.
  • Penalties for late payment of VAT in Denmark: Interest on arrears of 0.8% per month overdue.

In addition to VAT returns, companies may be required to provide the Danish authorities with Intrastat & EC Sales List returns:

  • Intrastat returns enable the Danish authorities to compile foreign trade statistics.
    Companies must file these Intrastat returns as soon their turnover reaches the threshold.
    Intrastat threshold at introductio n in Denmark (7 200 000 DKK (+/- 936 000 EUR) HT/an)
    – Intrastat threshold on dispatch in Denmark (5 200 000 DKK (+/- 676 000 EUR) HT/an).
    Failure to comply with the deadlines imposed by the Danish authorities for the filing of these Intrastat returns wil incur a penalty payment for the company.
  • The sales summary returns (EC Sales List or ESL) or purchases (EC Purchases List or EPL) in Denmark are for tax purposes.
    Failure to comply with the deadlines imposed by the Danish authorities for the filing of these ESL returns wil incur a penalty payment for the company.

In principle, a non-resident company in Denmark can recover all or part of the VAT incurred on its expenses.

There are three different scenarios:

  • The company, whether it is established within the European Union or not, is already registered for VAT in Denmark, or is obliged to register for VAT in Denmark. In this case, it must apply for a VAT refund via the periodic VAT return filed in Denmark, according to a periodicity:monthly.
  • The company is established within the European Union, is not registered for VAT in Denmark and is not required to do so. In this case, a VAT refund should be requested via the tax authorities’ electronic portal in the country where the company is established.
  • The company is not established within the European Union and is not required to register for VAT in Denmark. In this case, they must use the services of a fiscal representative to carry out what is required by the Danish authorities on their behalf.
    > Learn more about our VAT recovery services.


*This information is subject to change without notice.

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