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.
In this VAT guide, we have brought together the specific features of the Danish regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.
With EASYTAX, be 100% VAT compliant, always.
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 | 22,000,000 DKK (+/- €2,949,760) |
| Intrastat threshold on dispatch | 11,000,000 DKK (+/- €1,474,770) |
| 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 return | monthly depending on threshold |
|---|---|
| EC Sales List (ESL) return | monthly, quarterly |
| VAT returns | monthly |
|---|---|
| Reporting currency | DKK |
VAT-related penalties in Denmark |
|
| Failure to file a VAT return | A fine of 800 DKK (about 107 euros) per declaration |
| Late payment of VAT | 0.7% per month of delay. The penalty is calculated on a daily basis (pro rata temporis). A penalty of 65 DKK (about 9 euros) per reminder from the administration. |
| Failure to report ESL/DEB | A fine of 65 DKK (approx. 8 euros) per ESL declaration |
Useful links on VAT in Denmark |
|
| Tax Administration 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 |
|---|
Need VAT assistance in Denmark? Contact us now.
A foreign company carrying out transactions in Denmark subject to Danish VAT, may be required to appoint a tax representative. Established in Denmark, the fiscal representative will fulfill the company’s VAT obligations to the Danish tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.
Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.
To secure your operations, lighten your company’s administrative burden, and control tax risks in Denmark.
Intra-Community and Danish VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.
Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.
Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Denmark, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.
Need a tax representative in Denmark? Contact us now.
The VAT rates currently in force in Denmark are as follows:
Need a tax representative in Denmark? Contact us now.
Do you need a VAT fiscal representative in Denmark? Certain operations may require VAT registration and the filing of VAT returns in Denmark:
To check whether your activities give rise to VAT obligations in Denmark, use our VAT simulator .
Need a VAT tax representative in Denmark? Contact us now.
In Denmark , as in other European Union countries, e-sellers must register for VAT:
In addition to VAT registration, e-traders must:
Find out more:
Need a VAT tax representative in Denmark? Contact us now.
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.
Danish VAT is named Merværdiafgiftsloven- (Momsloven)and the VAT numbers in Denmark have the following structure: DK99 99 99 99.
The administrations in charge of VAT in Denmark are the following: Tax authorities, Ministry of Finance.
VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Denmark, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
To check if your activities require VAT identification in Denmark, use our VAT simulator or contact us.
Companies with a VAT number in Denmarkmust complete and file dVAT decl arations in Denmark detailing all taxable income (sales) and expenses (costs), at regular intervals: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:
Need VAT assistance in Denmark? Contact us now.
In addition to VAT returns, companies may be required to provide the Danish authorities with Intrastat & EC Sales List returns:
Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.
In principle, a non-resident company in Denmark can recover all or part of the VAT incurred on its expenses.
There are three possible scenarios:
Rely on our VAT recovery services in Europe. Contact us today.
*This information is subject to change without notice.
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