VAT registration in Denmark

• Currency: DKK

• VAT is called: VAT

• EU member: Yes

• Format VAT number: SE-Nr. DK99 99 99 99

• VAT rate: 25%

Foreign companies that have no establishment in Denmark, but that sell services in Denmark, e.g. real estate services or that deliver goods that are sold only when they are installed, can in most cases avoid a VAT registration in Denmark. The reason is that Denmark applies reverse tax liability / Reverse Charge if the buyers are exclusively Danish-registered businesses. Reverse Charge means that the buyer must collect the VAT and that the seller invoices without VAT. However, the buyer's VAT number and why you invoice without VAT must be stated on the seller's invoice. On the other hand, foreign companies that sell pure goods domestically in Denmark must register for VAT, as Reverse Charge is not applied to domestic sales of goods.

In addition to domestic sales of goods, the following transactions are examples of when VAT registration in Denmark becomes necessary:

• Sales of electronic or telecommunications services to private individuals in Denmark

• Goods transports from Denmark to other countries performed on behalf of private individuals, e.g. removal of household goods

• Passenger transport in Denmark (most, however, exempt from VAT in DK)

• Own inventory in Denmark

• Business management on site in Denmark

• Purchase of goods from the EU to Denmark or sale of goods to the EU from Denmark

• Import to or export from Denmark

• Resale of several types of costs (eg hotel overnight stays invoiced to other foreign companies or bus transfers in Denmark) that occur at conferences, trade fairs, etc.

VAT registration in Denmark

An application for VAT registration in Denmark must be made no later than 8 days before activities subject to VAT start in Denmark. If you fail to register for VAT on time, a fine can be imposed. VAT registration in Denmark usually takes 2-3 weeks. The tax authority then returns and issues a Danish VAT number (called an SE number).

Voluntary VAT registration in Denmark is permitted.

VAT reporting in Denmark

The VAT reporting period can be quarterly, monthly and in some cases even years depending on annual sales. If you conduct EU trade to and from Denmark, in addition to the VAT report, you must also submit an EC sales list. If the flows exceed the threshold for Intrastat you must also report Intrastat.

In general, it can be said that it is not very easy to fulfil your declaration obligations in Denmark as in other countries, once you have managed to register for VAT. Foreign taxpayers, just like local companies, are expected to know the local for VAT and the regulations that taxpayers in the country in question must follow. In Denmark, as in several other countries, e.g. amount of a fine when a taxpayer fails to tax himself with Danish VAT when the seller has invoked the Reverse Charge or if he does so incorrectly.

In addition, the electronic VAT returns prescribed may be difficult for foreign companies to submit. Each country has its own system and in many countries the signatory can be required to have a personal identity number from the country or that he or she personally collects a code for online reporting from the tax authority in the country.