VAT Tax Denmark 2024

VAT Rates in Denmark in 2024

Denmark has two VAT rates – the standard and the zero rate. Interestingly, in every other EU country, there is at least one reduced rate between the standard and zero rates. However, Denmark is an exception in this regard.

25% – The standard rate of Danish VAT

In Denmark, there is one standard VAT rate, which is 25%, and it applies to all goods and services not covered by the zero VAT rate.

If you want to know more, check the VAT rates in other European countries in 2024.

0% – The zero rate of Danish VAT

Although the VAT in Denmark is uniform and does not include reduced rates, compared to other EU countries, in Denmark, services that are highly taxed in other countries may be subject to 0% VAT.

The zero VAT rate in Denmark applies to newspapers and magazines that are published more frequently than once a month, and to international and intra-community transport of people and goods. Additionally, the 0% VAT rate in Denmark covers:

• medical services,
• financial services,
• insurance,
• sale of selected real estates,
• education in primary and higher education,
• professional coaching,
• cultural and artistic services.

If you run a business that provides services from the above areas, you will not have to add VAT to your invoices.

When is it necessary to register for VAT purposes in Denmark?

Due to the harmonization of VAT in the European Union, the registration requirements in Denmark are similar to those in other member states. VAT registration is required here when:

• importing goods through Denmark to other EU countries,
• selling and buying goods in Denmark or selling from Denmark to other countries,
• providing VAT-eligible services,
• storing goods in Denmark,
• organizing live events,
• the company is not registered as a VAT entity but receives a service on a reverse charge basis.

Moreover, VAT registration in Denmark is mandatory for foreign companies conducting B2C transactions that have exceeded the intra-community sales limit and do not settle VAT under the VAT OSS.

If you need help with VAT registrations in EU countries or the UK, schedule a consultation with us.

Who is exempt from mandatory VAT registration in Denmark?

Companies whose revenue in the previous 12 months did not exceed 50,000 DKK are exempt from the VAT registration obligation in Denmark, although VAT registration is still possible for them.

If the revenue exceeded 50,000 DKK and the company is not yet registered for VAT, it must register as soon as possible.

Furthermore, if companies expect such revenues, they should register for VAT no later than 8 days before starting their activity.

VAT Registration in Denmark

Foreign entrepreneurs can register for VAT purposes in Denmark by submitting a form on the virk.dk website.

When the VAT registration is successful, entrepreneurs will receive a Danish VAT number – DK-nummer – at the provided correspondence address.

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VAT Declaration Deadlines in Denmark

In Denmark, VAT declarations must be submitted:

• monthly – for companies with a turnover exceeding 50,000,000 DKK, by the 25th day of the month following the settlement period,
• quarterly – when turnover is within 5,000,000 – 50,000,000 DKK, with the deadline being the first day of the third month following the quarter,
• semi-annually – for companies with a turnover less than 5,000,000 DKK, with the same deadline as for quarterly declarations.

Remember, however, to be completely sure you have correctly filled out the declaration, it is best to consult a tax advisor.

Danish Tax Office

The Danish Tax Office, or rather the Danish Tax Agency and its address, is:

Skattestyrelsen,

Nykøbingvej 76, bygn. 45,

4990 Sakskøbing.

Intrastat Denmark

In Denmark, besides the obligation to submit VAT declarations, there is also a statistical reporting obligation of Intrastat. Let’s remember that this is a European reporting system used by the European Union to track intra-community transactions and monitor the flow of goods.

In the case of Denmark, the basic thresholds are 22,000,000 DKK for imports and 11,000,000 DKK for exports, and the deadline for submitting Intrastat declarations is the 10th day of the month following the period the report pertains to.

If you want to learn more about the thresholds, check our article on the subject – Intrastat Thresholds 2024.

VAT Denmark - Summary

The basic VAT rate in Denmark is set at 25%, and interestingly, as the only country in the EU, Denmark does not have any reduced VAT rate between this and the zero rate. Under this rate in most member states are international and intra-community transport. However, in Denmark, the zero VAT rate covers, among others, medical services, financial services, and professional coaching.

Moreover, VAT declarations in Denmark must be submitted monthly, quarterly, or semi-annually, and this term depends on the turnover of the company. Furthermore, VAT registration in Denmark is done by submitting an application online through the Virk.dk website, and the Danish Tax Agency – Skattestyrelsen is the equivalent of the Danish tax office.

If you want to learn more about the value-added tax, VAT rates, or declarations in EU countries, check out what these issues look like in Portugal or Hungary, or read about VAT registrations in Austria, the Czech Republic, France, Spain, Germany, the UK, or Italy.

If you need help with VAT registration and VAT OSS or VAT settlements, schedule a consultation with us, and see what our VAT Compliance team can do for you.