Danish VAT rates and VAT compliance
Danish VAT rates
Foreign businesses must charge Danish VAT rates if they are VAT registered in Denmark. Failure to do so will leave the company liable to any under collected VAT. The framework for the rates is set by the EU (e.g. the minimum VAT rate must be above 15%). However, Denmark is free to determine the higher, standard rate, and most of the reduced rates.
The current rates are:
Danish VAT rates
|Rate||Type||Which goods or services|
|25%||Standard||All taxable goods and services.|
|0%||Zero||Newspapers and journals (published more than once a month); intra-community and international transport.|
Danish VAT compliance
For foreign companies VAT registered in Denmark as a non-resident trader, there are a number of rules to follow for the bookkeeping, charging and rates for VAT trading. This includes:
- Issuing invoices with the disclosure details outlined in the Danish VAT Act.
- Correct invoicing of customers for goods or services in accordance with the Danish time of supply VAT rules.
- Use of electronic invoices, and approvals by customers.
- Maintenance of accounts and records, which must be held for at least seven years.
- Processing of credit notes and other corrections.
- Use of approved foreign currency rates.
What is the tax point for Danish VAT?
The tax point (time of supply) rules in Denmark determine when the VAT is due. It is then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).
For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.
Latest Danish news
December 12, 2018
On 12 December, the European Commission published details of a new rule which would make large online marketplaces responsible for calculating, collecting and remitting VAT on certain B2C cross-border transactions below €150. Where goods are imported by an EU or non-EU merchant, and then sold via a marketplace in another EU country..
March 31, 2017
Poland: It’s now possible to create a Correction VAT Book Slovakia: We have changed the way we handle boxes that are recalculated on the...
January 27, 2017
From the 1 January 2017, Denmark removed the VAT exemption on postage costs for domestic e-commerce deliveries. The move has been critisied by the...
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