EU VAT REGISTRATION - VAT DENMARK
EU VAT registration in Denmark
Value added tax was introduced in Denmark in 1967 because the old sales tax system was withdrawn. The tax system is known locally as Merværdiafgiftsloven (Momsloven).
The Danish VAT Act 1994 contains many provisions regarding local VAT. Further guidance is provided by tax authorities through quarterly newsletters or bulletins issued by the Central Customs and Tax Administration.
Denmark and other EU members are implementing VAT rules based on the European VAT Directive. This sets the framework for Danish VAT registrations, returns, compliance, intrastat and related declarations.
VAT registration in Denmark for companies:
As a foreign company based in Denmark, you must pay VAT in Denmark when selling goods and services. In some cases, your business must also pay Danish taxes on any profits generated by your company.
If your company employs employees, it is your responsibility to deduct the Danish tax and contributions to the labor market from the remuneration you pay your employees for work done in Denmark.
By contrast, an application for VAT registration must be made in Denmark at least 8 days before starting operations in Denmark. If the company fails to submit the application on time or at all, or the information provided is incorrect or insufficient, the company may be fined.
If you know you need to register VAT in Denmark, don’t hesitate and contact us and we will help you.
When is VAT registration in Denmark required?
⇒ Distance selling to private individuals in Denmark from another EU country, e.g. online sales;
⇒ Organizing live events (conferences related to art or education);
⇒ If the company is not registered as a VAT entity in Denmark but receives a service in Denmark according to the system rules reverse charge.
Foreign companies must check the need for VAT registration
If the annual value of distance sales to Denmark is less than DKK 280,000 = € 37,595, then VAT on domestic sales taxable is charged at the rate applicable in your country. You pay there too.
If you exceed the distance selling threshold, you must charge Danish VAT on sales subject to VAT at a Danish rate, instead of applying the rate in your country and including it in Denmark.
The registration date is the date when the total distance sales turnover threshold is exceeded. It is also the date from which you need to start adding Danish VAT to sales.
The application for VAT registration is submitted on the form No. 40.112.
What documents do we need to register VAT?
In order to register a foreign company for Danish VAT purposes, we need the necessary documents to do so. These are usually documents such as:
⇒ Company registration document with NIP / VAT number;
⇒ Certificate of no tax arrears from the tax office;
⇒ A copy of the contract / offer / contract concluded with the natural person;
⇒ Filled out appropriate form.
Do you have any questions about VAT registration in Denmark?
Do you have any questions about registering your company’s VAT in Denmark? Not sure if your company must be registered in Denmark? If so, contact us via our contact form.
|Local VAT number||DK + 8 characters|
|Mail order threshold||280.000 DKK = 37.595 €|
|Submission of VAT returns||– Monthly
|Annual declaration||No, but If your company’s annual turnover in Denmark exceeds DKK 55,000,000, the company is required to report VAT immediately. And if the turnover does not exceed DKK 5,000,000, the frequency will be changed to semi-annual.|
|Waiting time for registrations||Up to 3 months|
|Standard VAT rate||25.00%|
|Reduced VAT rate||–|
|European Union Member State||Yes, since 1973|