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Non-EU importers into Denmark lose VAT registration rights

  • VAT
  • 12 September 2013 | Richard Asquith

Non-EU importers into Denmark lose VAT registration rights

Non-EU companies importing into Denmark will no longer be able to register for Danish VAT unless they are also performing intra-community supplies to other EU countries.

At present, this change of policy does not affect EU companies importing into Denmark, but this may change.

Non-EU importers face VAT cash flow risks

The change means that non-EU companies with an existing Danish VAT registration who are only importing will have to deregister by the end of 2013.  Whilst they can still import, they will have to recover the Danish import VAT through a VAT recovery claim.  This in turn will depend on whether the importer’s home country has a tax reciprocity agreement with Denmark.

The Danish tax authorities have allowed an exception for non-EU companies which then move the imports to other EU member states (either as dispatches/sales to other VAT registered businesses or an inter-company transfers to warehouses).  The type of intra-community supply still needs recording within the EU VAT system, so the Danes have put in an exception.

Other countries, including France and Italy, have put in similar measures in recent years.


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.