Denmark joined the European Union in 1973. It is not a part of the Eurozone and trades in the Danish Krone. The country has been a member of the Schengen area since 1996.

VAT rates in Denmark

The standard rate of VAT is 25%. There are no reduced rates available.

VAT registration in Denmark

The VAT registration limit for established businesses is DKK 50,000, although it is zero for non-established businesses.

Distance sales have a limit of DKK 280,000 for VAT registration.

The format for a Danish VAT identification number is: DK 12 34 56 78. Every company must hold a number like this in order for accurate taxation.

VAT returns are dependent on turnover:

  • Companies with an annual turnover exceeding DKK 15 million must submit VAT returns monthly.
  • Companies with an annual turnover of between DKK 1 and 15 million must submit VAT returns quarterly.
  • Companies with an annual turnover below DKK 1 million must submit VAT returns biannually.

Are there any Intrastat thresholds in Denmark?

Yes. There is a limit of DKK 5,000,000 for dispatches and DKK 3,900,000 for arrivals.

VAT recovery in Denmark

  • Is VAT recovery permitted for non-established non-EU businesses?

Yes, allows VAT recovery for all non-EU countries.

  • Are there any non-VAT recoverable expenses?

Yes, recovery of VAT on certain goods and services, for example with hotels and catering, is not permitted.

Reverse charge applies to the majority of cross border services. Some other services provided by a non-established supplier to a Danish VAT registered are also subject to the reverse charge.

Requirements and regulations in Denmark

Any company established in a non-EU member country must appoint a tax representative to register for VAT in Denmark.

Use and enjoyment rules apply in Denmark to items such as advertising services and the hire of goods.

The period of VAT recovery by tax authorities has a timescale of 3 years; the same is true of deductions and refunds.

Please contact us for further information about paying taxes in Denmark, and a member of our team will be happy to help you.

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