Denmark operates a value-added tax (VAT) system known locally as Merværdiafgift (moms). Denmark has been a member of the European Union (EU) since 1973, and its VAT framework is aligned with the principles of the EU VAT Directive.
Danish VAT is governed primarily by the Danish VAT Act (Momsloven) and related regulations. VAT is administered by the Danish Tax Agency (Skattestyrelsen). The Danish Tax Agency is responsible for issuing guidance, processing VAT registrations and returns, overseeing compliance obligations, and enforcing VAT rules in Denmark.
Businesses carrying out taxable activities in Denmark — whether resident or non-resident — must comply with Danish VAT obligations. This includes VAT registration where required, applying the correct VAT rates, issuing VAT-compliant invoices, maintaining appropriate accounting records, and filing periodic VAT returns in accordance with Danish and EU VAT rules.
