VAT rate in Denmark

VAT in Denmark. What are the VAT levels in Denmark? Where can I find info about danish VAT? What are the Danish VAT rates? What is the Danish VAT rate? Is Greenland included in the Danish VAT region? What is the VAT on electronic services in Denmark? What is the Danish threshold for distance selling?

Danish VAT number

Format of EU VAT number: DK00000000

Domestic VAT registration number is called CVR number.

What is the standard VAT rate in Denmark?

Standard VAT rate: 25%

What is the reduced VAT rate(s) in Denmark?

Reduced VAT rate: – (none)

Denmark is the smartest of the Nordic countries and has understood that the best is to have just one VAT rate, namely 25%. They have no reduced VAT rates as there are in many other EU countries. This means saving a huge amount of time and money from a socio-economic perspective as people and businesses don’t have to check whether the VAT is x%, y% or z% … the Danes don’t have to this! 

There are goods and services in Denmark that are exempt from VAT, so you could say that there is also a sort of reduced tax rate in Denmark of zero percent (Newspapers and magazines published more than once a month).

Unfortunately, Denmark has quite a complicated VAT system when it comes to what and how much is deductible when running your own business.

Tables showing how much input VAT you can book out of the total VAT for different goods and services (if you are VAT registered in Denmark)

This information page lists all VAT rates for all EU countries

VAT Refund

Foreign businesses in Denmark cannot request a VAT refund for: Tax, Food and Representation for owners and employees (though partially for representation meal with external party), Hotel and Accommodation for owners and employees, Road tolls, Vehicles (long-term leasing in part).

VAT on electronic services

Danish VAT for digital services: 25%

Now that all companies selling digital services and products to private customers in Denmark must calculate and pay VAT based on the VAT rate for electronic services in Denmark, many people are looking for information on what rules and laws apply when selling electronic services to private customers in Denmark. The Danes are geniuses and made their VAT system simple by having just one VAT rate: 25 percent. This means that all electronic and digital services and products simply get 25% VAT. So easy and smart, just imagine if the other EU countries could be as smart as the Danes!

Threshold value for distance sales to Denmark

What is the threshold for distance sales to Denmark? If you are a company outside Denmark and you trade with Denmark and sell goods so well that you exceed DKK 280,000, your company must be registered for VAT in Denmark, which practically means that you must present accounts and pay VAT to skat.dk.

The threshold for distance selling in Denmark: 280000 DKK

(thresholds not applicable after the change RU rules 1 july 2021)

How to register for VAT in Denmark?

Here you can read a guide for VAT registration in Denmark

Exception for VAT in Denmark

Faroe Islands and Greenland formally belong to Denmark but have self-government and are not actually in the EU, and not part of the EU’s customs union or the EU VAT area. This means that sales to the Faroe Islands and Greenland are treated as exports outside the EU for tax (and VAT) purposes. If you buy goods or services from the Faroe Islands or Greenland, you will be importing from outside the EU, but the territories belong to Denmark. That’s how crazy it actually gets with VAT management in the EU. But that’s just the tip of the iceberg. There are quite a few exemptions from VAT within the EU.

Helgoland is an island in the sea between Denmark and the Netherlands. The island belonged to Denmark from the 13th century until it became part of Schleswig-Holstein, then it became Danish again in 1714 and after some ambiguities it is today part of Germany but is not part of the EU VAT area.

Sales to the Faroe Islands, Greenland and Helgoland are treated as exports outside the EU (just like Finnish Åland).

How do I check the Danish VAT number?

Here you check the VAT number for a Danish company in Denmark

How to check EU VAT number?

Check European VAT numbers

Which areas are included in the EU VAT area?

Here you can see the full list of EU VAT areas

Author: Momsviden

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