Danish VAT

Values Added Tax was introduced in Denmark in 1967 as the old sales tax regime was withdrawn. The tax system is known locally as Merværdiafgiftsloven (Momsloven).

The Danish VAT Act of 1994 contains many of the rules for local VAT. Further guidance is provided by the tax authorities through quarterly bulletins or newsletters, issued by the Central Customs and Tax Administration.

Denmark, along with other members of the EU, implements its VAT rules based on the European VAT Directive. This sets the framework for Danish VAT registrations, returns, compliance, Intrastat and related declarations.

The Danish authorities may require non-resident companies to register for local VAT is they are providing goods or services locally. The situations were this is required are similar in most EU countries, although there are important variations – see our Reverse Charge briefing. The chief Danish VAT registration scenarios are:

• Importing goods into the European Union via Denmark
• Trading (buying and selling) goods in Denmark
• Use of consignment stock warehouse facilities for sales of stored goods to local customers
• Intracommunity sales (dispatched) or purchases (acquisitions) of goods from another EU country
• Online (distance) sales to consumers from another country
• Running live conferences or events with paid admission on the door
• If a company is otherwise a non-VAT trader, but is receiving services in Denmark under the reverse charge rule.
• The self supply of goods

Since the EU’s 2010 VAT package, there are very limited situations whereby a VAT registration is required for the provision of services.

Note that providers of electronic, broadcast or telecoms services to consumers in Denmark only have to VAT register in one EU country under the MOSS scheme to file a single return covering all 27 member states.

If you do need to VAT register, read our Danish VAT registration briefing to understand the requirements, including any VAT registration thresholds that may apply.

There may be further exemptions from the requirement to VAT register in Denmark that you should consider. Please read our Danish VAT Reverse Charge briefing.