Danish VAT rates and VAT compliance

As an EU member state, Denmark follows EU rules on value-added tax (VAT) compliance. Danish VAT is administered by the Danish Tax Agency (Skattestyrelsen).

Denmark applies a single standard VAT rate, with limited zero-rating for specific supplies. 

Some supplies are exempt from VAT in Denmark. These commonly include:

• Certain financial and insurance services  
• Healthcare and medical services 
• Education and vocational training  
• Certain cultural and non-profit activities  
• Residential rental of immovable property

Exempt supplies do not generate output VAT and generally do not allow recovery of input VAT related to those activities. 

A VAT number is required for businesses carrying out taxable activities in Denmark.

Danish-established businesses must register for VAT once annual taxable turnover exceeds DKK 50,000 within a 12-month period. Below this threshold, registration is not mandatory unless specific taxable transactions trigger compulsory registration. 

Non-established (foreign) businesses making taxable supplies in Denmark must generally register for VAT from the first taxable supply unless the reverse charge mechanism fully applies. There is no turnover threshold for nonresidents. 

For cross-border B2C supplies of goods and services within the EU, the EU One-Stop Shop (OSS) threshold of EUR 10,000 applies. Once exceeded, VAT must be charged in the member state of consumption, and the supplier may register locally or elect to use the OSS scheme. 

Get more information on VAT registration in Denmark. 

VAT-registered businesses in Denmark must file periodic VAT returns. Filing frequency depends on turnover: 

• Monthly: Applies where annual turnover exceeds DKK 50 million 
• Quarterly: Applies where annual turnover is between DKK 5 million and DKK 50 million  
• Semi-annual: Applies where annual turnover is below DKK 5 million  

Returns include output VAT on sales and recoverable input VAT on purchases. 

In addition to VAT returns, businesses may also be required to submit: 

• EC Sales Lists (EU Sales Lists)  
• Intrastat declarations (for intra-EU goods movements above thresholds)  

All filings are submitted electronically through the TastSelv Erhverv system. 

Get more information on VAT returns in Denmark. 

Foreign businesses storing goods in Denmark must consider VAT registration if those goods are held for sale. 

Holding inventory in Denmark for resale typically triggers VAT registration obligations. Imports from outside the EU may also trigger VAT registration, particularly where the foreign business acts as importer of record. 

Denmark applies EU call-off stock simplification rules in line with the EU VAT Directive.

VAT is generally payable on the importation of goods into Denmark. 

• Import VAT is due at customs clearance.  
• VAT-registered businesses may recover import VAT as input VAT if the goods are used for taxable activities.  

Foreign businesses supplying digital services (telecommunications, broadcasting, and electronically supplied services) to Danish consumers must charge VAT once the EUR 10,000 EU-wide B2C threshold is exceeded unless they elect to use the One-Stop Shop (OSS) scheme. 

The standard VAT rate of 25% generally applies. Businesses must register for Danish VAT or use OSS depending on their cross-border supply model. 

EU-established businesses may reclaim Danish VAT through the EU VAT refund procedure via their home tax authority, generally by 30 September of the following year.

Non-EU businesses may reclaim Danish VAT under the 13th Directive refund procedure, subject to reciprocity and documentation requirements. 

Some foreign businesses making only reverse-charge supplies may not be required to register locally and may instead rely on simplified recovery mechanisms. 

Denmark applies zero-rating to qualifying exports of goods and certain services supplied outside the EU. Zero-rating allows VAT to be charged at 0% while preserving the right to recover related input VAT, provided documentary requirements are met. 

Intrastat declarations monitor intra-EU trade in goods. Danish VAT-registered businesses must submit Intrastat filings if annual thresholds set by the Danish statistical authorities are exceeded. 

• Reporting is typically monthly once thresholds are exceeded.  
• Filings include commodity codes, values, quantities, and partner member state details.  
• Submissions are made electronically through the designated statistical reporting systems.  

Denmark requires EC Sales Lists for supplies of goods and certain services to VAT-registered customers in other EU member states. 

Details typically include: 

• Customer VAT identification numbers  
• Total value of goods or services supplied  
• Transaction type  

ESLs must be filed electronically with the Danish Tax Agency, generally on a monthly or quarterly basis depending on the reporting profile. 

Businesses must issue VAT-compliant invoices that include: 

• Supplier and customer details  
• VAT number(s)  
• Description of goods or services  
• VAT rate(s) and VAT amount  

Denmark does not currently operate a real-time invoice clearance system or SAF-T reporting regime for VAT purposes.

Time-of-supply rules: 

• Goods: VAT generally becomes chargeable when the goods are delivered or when the invoice is issued, whichever occurs first.  
• Services: VAT is generally due when the service is supplied or when payment is received, depending on the circumstances.  
• Imports: VAT is due at customs clearance.  

VAT records must generally be retained for five years. VAT returns and payments are due according to the applicable filing frequency deadlines.