EU VAT registration - VAT in Denmark

General Information:

Value added tax was introduced in Denmark in 1967 because the old sales tax system was withdrawn.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?

⇒ Import: import of products from the EU through Denmark;

⇒ Purchase and sale of goods in Denmark;

⇒ Storage of goods in Denmark;

⇒ Sales of products from Denmark to other EU countries;

⇒ Sending products between and another EU member state (intra-Community supplies);

⇒ 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 of rules for reverse charge.