Danish VAT Rates and VAT Compliance

In an era of increasing international trade and investment, understanding the complexities of Value Added Tax (VAT) systems is of paramount importance for businesses.

In this context, the Danish VAT system presents its own unique set of challenges and opportunities.

Denmark, as a member of the European Union, conforms to the EU’s VAT Directive, yet applies its own standard VAT rate, currently at 25%, across most goods and services.

Nevertheless, the principles of VAT compliance in Denmark, encompassing the tax point rules and the specific obligations for foreign businesses registered for VAT in the country, can be intricate and often bewildering.

Thus, it becomes critical to consider these factors carefully to minimize the risk of non-compliance, the consequences of which can be severe.

In the following segments, we’ll explore these aspects in detail, aiming to equip businesses with the necessary insights to navigate the Danish VAT landscape successfully.

Key Takeaways

  • Foreign businesses VAT registered in Denmark must charge Danish VAT rates to avoid liability for under collected VAT.
  • The EU sets the framework for VAT rates, with a minimum rate above 15%, but Denmark determines the higher standard rate (25%) and most reduced rates (zero for specific goods/services).
  • VAT compliance for foreign companies VAT registered in Denmark requires following specific rules for VAT trading, including bookkeeping, invoicing, and maintaining accounts and records for at least seven years.
  • The tax point (time of supply) rules determine when VAT is due in Denmark, with VAT payable to tax authorities 10 days after the VAT reporting period ends. The tax point for goods is the time of delivery or passage of title, and for services, it is the completion of the service.


In the realm of Danish VAT rates and compliance, it is essential to have a comprehensive understanding of the subject matter. This section will provide an overview of the established VAT rates in Denmark, as well as vital information about compliance with the Danish VAT Act.

The objective is to equip businesses with the necessary information to successfully navigate the Danish VAT system and adhere to its regulations.

Danish VAT Rates Overview

While the standard VAT rate in Denmark stands at 25% for all taxable goods and services, it’s noteworthy that certain supplies such as newspapers, journals, and specific international transactions are zero-rated.

As per the Danish VAT Act:

  1. The 25% rate applies generally.
  2. A reduced VAT rate exists for particular goods.
  3. Danish tax authorities enforce VAT compliance.
  4. Specific goods are subject to a 0% VAT rate.

VAT Compliance Advice

Shifting our focus from the Danish VAT rates, it is crucial to understand the complexities of VAT compliance. This includes specific rules for VAT trading, stringent invoicing regulations, and meticulous record-keeping requirements.

Companies registered for VAT in Denmark must adhere to the Danish VAT Act. They are also required to submit VAT returns within the specified reporting period and ensure compliance with the Tax Authority’s requirements. All of this must be done within the framework of EU VAT regulations.

Elevate Your Tax Calculations

Experience the ease of managing VAT in Denmark with our specialized VAT Calculator. Designed to perfectly align with Denmark VAT regulations, it promises both simplicity and precision in tax computations. This tool is indispensable for businesses of all sizes, transforming the daunting task of VAT calculation into a streamlined process. Embrace a new level of efficiency in your financial operations.

Rely on our Denmark VAT Calculator for accurate VAT management.

Frequently Asked Questions

What Is the VAT Legislation in Denmark?

The VAT legislation in Denmark involves a standard rate of 25% on all taxable goods and services. It also requires adherence to specific rules for VAT trading, invoicing, and record keeping as per the Danish VAT Act.

What Is the VAT Law 34 in Denmark?

VAT Law 34 in Denmark governs the value-added tax system, including rates and compliance rules. It details registration processes, invoicing requirements, and penalties for non-compliance, ensuring efficient VAT administration in the country.

What Is the VAT Registration Threshold in Denmark?

The VAT registration threshold in Denmark is DKK 50,000 over a 12-month period. Businesses reaching this taxable turnover are required to register for VAT, a process typically completed within approximately 21 days.

Do I Charge VAT to a Danish Company?

If you’re VAT registered in Denmark and trading with a Danish company, you must charge Danish VAT. Failure to do so may result in liability for under-collected VAT and potential penalties. Always comply with Danish VAT Act.


In conclusion, understanding and adhering to Danish VAT rates and compliance requirements is crucial for foreign businesses operating in Denmark.

By staying informed about the latest regulatory updates and seeking expert assistance, businesses can effectively navigate the complexities of the Danish VAT system, ensure compliance, and avoid potential liabilities.

Continued vigilance and proactive management of VAT obligations is therefore vital to business operations within the Danish market.

Barry Caldwell

Barry Caldwell

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