VAT in Denmark – get registered and file correctly

If you are a foreign company selling to or trading with Denmark, you must address Danish VAT requirements. As a general rule, foreign companies without a permanent establishment in Denmark must register for VAT as soon as they carry out a VATable transaction in the country; there is no turnover threshold. The standard rate is 25%—a flat rate with no reduced rates—and VAT returns are filed monthly, quarterly, or half-yearly, depending on turnover.

Do you need to register for VAT in Denmark?

Under the EU VAT Directive, foreign companies are required to register for VAT in a number of situations. Registration ensures that you can correctly charge, report, and remit Danish VAT. It is important to assess this obligation before commencing operations to avoid fines and retrospective assessments. The most common circumstances triggering a registration requirement are:

• Import of goods into Denmark from countries outside the EU.
• Purchase and sale of goods within Denmark.
• Sale of goods from Denmark to customers in other countries (both B2B and B2C).
• Intra-Community acquisitions—that is, purchases of goods in Denmark from other EU countries.
• Inventory in Denmark for sale, distribution, or consignment.
• Events in Denmark where participants pay an admission fee.

If you are unsure whether your specific activity triggers a registration requirement, please contact us before you begin. We are familiar with Danish procedures and have easy access to the local authorities.

VAT in Denmark – rates and key figures

Conditions	Detail
Standard rate	25 %
Reduced rate	None (Denmark has a single flat VAT rate)
Zero rate (0%)	Including newspapers, as well as supplies of goods within the EU and exports outside the EU.
Registration threshold	None for foreign companies without a permanent establishment (DKK 50,000 over 12 months for Danish companies)
Distance selling threshold (OSS)	€10,000 in total EU distance sales per calendar year
VAT number format	DK + 8 digits (identical to the CVR number), e.g. DK12345678
Reporting period	Half-yearly (under DKK 5 million), quarterly (DKK 5–50 million), or monthly (over DKK 50 million)
Fiscal representative	Required for companies established outside the EU

Denmark has a simple VAT structure with a single rate of 25% applicable to most goods and services. There are no reduced rates, though certain services are VAT-exempt, and newspapers, exports, and EU supplies are subject to a zero rate. As a general rule, newly established businesses report on a quarterly basis for at least one and a half years, after which the Danish Tax Agency determines the reporting period.

E-commerce and webshop for Denmark

If you sell to Danish consumers via an online shop, your obligations depend on where your goods are located. In the case of pure distance selling from a warehouse in another EU country, you can use OSS – One Stop Shop, when your total cross-border distance sales to consumers in the EU exceed EUR 10,000 (excluding VAT) per calendar year. You then account for Danish VAT via a single consolidated EU return instead of registering in each country.

If, on the other hand, you hold stock in Denmark—for example, via a fulfillment center or other local storage—OSS cannot stand alone. In that case, you need a proper Danish VAT registration. Read more about Amazon and online marketplaces and about Danish e-commerce to the EU.

B2B trade and reverse charge

In B2B transactions, the reverse charge mechanism applies to a range of goods and services sold by businesses without a fixed place of business in Denmark to VAT-registered Danish customers. This means that the Danish buyer accounts for the VAT themselves, which can often reduce the need for local registration. However, the rules depend on the nature of the goods or services. If you sell to private individuals or maintain inventory in the country, the situation differs, and a specific assessment is required.

VAT refund in Denmark

If your company has incurred VAT-bearing expenses in Denmark, you can often reclaim the VAT paid, even if you are not VAT-registered there. Refunds are typically available for trade fair and conference expenses, hotel accommodation, meals, business entertainment, fuel, advertising, and purchases of goods and services. Please note that the right to a refund is limited for certain types of expenses. We help you assess what can be reclaimed and assist with the actual process. VAT refund.

Here is how TIMEVAT helps you in Denmark

TIMEVAT is a specialist firm focused on finance and exports, with many years of experience handling VAT across Europe. We speak the language, know the local procedures, and have easy access to the Danish authorities. We act as your extended arm to the authorities and look after your business as if it were our own.

• Registration: We assess your registration obligations and handle the entire Danish VAT registration process, including the appointment of a fiscal representative if you are established outside the EU.
• Filing and Compliance: We handle your ongoing VAT returns and EU sales lists, ensuring compliance with deadlines and formats.
• VAT Refund: We identify expenses eligible for a refund and reclaim the Danish VAT paid on your behalf.

Frequently asked questions about VAT in Denmark