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Denmark allows full deduction of hotel VAT 2015

  • VAT
  • 08 September 2014 | Richard Asquith

Denmark allows full deduction of hotel VAT 2015

Denmark is to allow companies, resident and non-resident, to recover the input VAT incurred on hotel accommodation. Currently, only 75% of Danish VAT incurred on hotel stays for business purposes may be reclaimed through a VAT return or a VAT reclaim (for non-resident companies).  This will now become 100% from 1 January 2015.

This follows a similar move in 2014 when Denmark allowed 75% of restaurant VAT to be recovered instead of just 50%.

VAT reform from foreign competition

Other countries have been implementing similar moves, including Spain allowing reclaims for hotel VAT from non-EU countries from next year. This is aimed as helping the local events and congress industry compete with other EU countries which do already allow full recoverability.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.