Key takeaways
- Denmark VAT rates: The standard VAT rate is 25%, with a 0% rate for specific goods and services such as newspapers and international transport.
- Registration threshold: Businesses must register once turnover exceeds DKK 50,000, while non-EU companies are required to appoint a fiscal representative.
- Filing & penalties: VAT returns are filed monthly, quarterly, or bi-annually, and late filings or payments can result in fines of DKK 800 plus 0.7% monthly interest.
If you're expanding your business into Denmark, a country with a strong economy and a welcoming environment for ecommerce, it’s likely you’ll eventually have to register for VAT. For more information on the Danish VAT system and how it might affect your business, read our guide.
What is the Danish VAT rate?
VAT (Value Added Tax) in Denmark is known as ‘Moms’. The standard VAT rate is 25%, but, unlike most other EU countries, Denmark has not implemented a reduced VAT rate, only a 0% rate. There is also no exempt supplies category in the country.
Registering for VAT in Denmark
Any business resident in Denmark with an annual turnover of more than DKK 50,000 must be registered for VAT.
If your annual cross-border sales to Denmark exceed €10,000, you’re required to register for VAT and submit regular VAT returns. This obligation also applies if you store products in Denmark or participate in programs like Fulfilled-by-Amazon (FBA) that involve Danish sales.
To register for VAT in Denmark, you'll need to contact the Danish tax authorities, also known as 'SKAT'. The registration process typically involves filling out an online form, printing and signing it, and sending it along with any requested documents to the provided address. In most cases, you can expect to receive your Danish VAT number within two weeks.
Fiscal representation in Denmark
If your business is located outside of the EU but sells goods or services in Denmark, you'll be required to appoint a fiscal representative. This representative will be responsible for managing your VAT affairs in Denmark and will share joint liability for Danish VAT matters.
Danish VAT return filing and penalties
VAT returns must be filed electronically via TastSelv Erhverv. How often a VAT-registered business is required to file a VAT return in Denmark will depend on the annual turnover of the business:
- Bi-annually if annual turnover is below DKK 5 million. The filing and payment deadline is the 1st of the third month following the end of the period.
- Quarterly if annual turnover is below DKK 50 million. The filing and payment deadline is the 1st of the third month following the end of the quarter.
- Monthly if annual turnover is above DKK 50 million. The filing and payment deadline is the 25th of the following month.
Failure to file a VAT return will incur a fine of DKK 800 (per declaration), whereas monthly interest of 0.7% will be imposed for late payments. There is also a penalty of DDK 65 for every reminder sent by the administration.
Danish Intrastat declarations
If your business moves goods across EU borders into or out of Denmark, you may be required to submit Intrastat declarations. These declarations must be filed by the 10th day of the month following the relevant reporting period. Failure to do so could result in fines. The annual thresholds for Intrastat reporting are DKK 22 million for arrivals and DKK 11 million for dispatches.
Reverse charge in Denmark
The reverse charge mechanism is applied to domestic supplies of goods made by businesses not established in Denmark to VAT-registered taxpayers within Denmark. This mechanism shifts the responsibility for reporting and paying VAT from the supplier to the recipient of the goods or services.
Frequently asked questions
What is the VAT rate in Denmark?
Denmark’s standard VAT rate is 25%, one of the highest in the EU. There is no reduced rate, but a 0% rate applies to newspapers, journals, and intra-community or international transport.
When do I need to register for VAT in Denmark?
Resident businesses must register when annual turnover exceeds DKK 50,000. The EU-wide distance selling threshold of €10,000 also applies. You must register if you store goods in Denmark or use Amazon FBA.
How do I register for VAT in Denmark?
Registration is completed through the Danish Tax Authority (SKAT). Applications are submitted online, printed, and signed before sending the required documents. You’ll typically receive your Danish VAT number within two weeks.
Do foreign businesses need a fiscal representative in Denmark?
Yes. Non-EU companies selling in Denmark must appoint a fiscal representative, who shares joint liability for VAT compliance and payments.
How often must VAT returns be filed in Denmark?
- Bi-annually – turnover below DKK 5 million
- Quarterly – turnover below DKK 50 million
- Monthly – turnover above DKK 50 million
Returns must be filed electronically via TastSelv Erhverv. Deadlines are the 1st of the third month after the reporting period (for bi-annual/quarterly) and the 25th of the following month (for monthly).
Are Intrastat declarations required in Denmark?
Yes. Intrastat declarations are mandatory if trade exceeds DKK 22 million (arrivals) or DKK 11 million (dispatches). Submissions are due by the 10th of the following month.
