This guide provides an overview of VAT in Denmark, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Denmark.
is the sole VAT rate in Denmark, with hardly any reduced rates available.
Foreign businesses that incur VAT on eligible expenses in Denmark may be able to reclaim it.
Doing business in Denmark? You’ll need to play by the Danish VAT Act (Momsloven) rules.
Registration is required only once your business exceeds the threshold in Denmark.
Denmark applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.
To claim a VAT refund in Denmark, businesses must retain original invoices showing Danish VAT, as well as proof that the expenses were incurred for business purposes. Invoices must be issued correctly, including the supplier’s valid Danish VAT number.
Foreign businesses can claim a VAT refund in Denmark for expenses incurred during a calendar year, but the application must be submitted by 30 September of the following year. This applies to both 8th Directive and 13th Directive businesses. Late submissions are generally not accepted. A Denmark VAT refund calculator can help estimate reclaimable amounts.
If a foreign business identifies an error in a VAT refund claim submitted to Denmark (VAT refund Denmark), corrections depend on the stage of the process. If the claim is still under review, the business can often provide additional documentation or clarification upon request from the Danish Tax Agency. This process is key to ensuring compliance with Denmark regulations.
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