Newsroom, VAT | 21. December 2022

Denmark: Compact B2B VAT Guide

The Danish Value Added Tax (VAT) or “Merværdiafgift (MOMS)” was introduced in 1967 – the current standard VAT rate of 25%; however, it was only introduced in 1991. There is no reduced VAT rate. by

What is the VAT rate (MOMS) in Denmark?

The standard Danish VAT rate is 25% and has been in force since 1991. There is no reduced VAT rate, only the standard VAT rate, the zero VAT rate (i.e. 0 %) and the VAT exemption.

Is there an obligation to register for VAT in Denmark?

The business must register for VAT if the taxable turnover has reached the threshold of DKK 50,000 in a 12-month period. In addition, if applicable, registration should take place eight days before the start of taxable business in the country.

How does VAT registration in Denmark work?

The registration process takes approximately 21 days after the application is sent. It should be noted that Form 40.112 for non-resident companies must be completed online.

When does an Intrastat declaration have to be made in Denmark?

Intrastat must be submitted if the annual turnover exceeds DKK 6,900,000 for arrivals and DKK 5,200,000 for dispatches. (The thresholds for 2022 are DKK 10,000,000 for dispatches and DKK 13,000,000 for arrivals. There are two ways a company can become subject to Intrastat: If a company’s trade exceeded the threshold in 2021. In this case, the enterprise will be obliged to report Intrastat in January 2022 or if an enterprise’s trade exceeds the threshold in 2022. In this case, the company will be obliged to report Intrastat as of the next reporting period).

The EC Sales List (ESL) is mandatory when a Danish taxable person carries out supplies of goods or services with a reverse-charge to EU VAT registrations, with the deadline being the 25th of each month. If a business only makes limited supplies, it may apply for permission to file quarterly.

How to make a B2B invoice in Denmark?

Anyone selling goods and/or services subject to VAT must issue an invoice. The invoice must contain the following information:

  • Consecutive invoice number
  • Invoice date
  • Name and address of the seller and his CVR no./SE no. (VAT identification number)
  • Name and address of the customer
  • Type of goods/services, quantity and price
  • Date of delivery (if different from invoice date)
  • VAT basis, price per unit excluding VAT, any discounts, bonuses, and rebates if not included in the price per unit.
  • Current VAT rate
  • VAT amount

Simplified B2B invoicing in Denmark

Anyone who sells goods and/or services for less than DKK 3,000 to another VAT-registered business may issue a simplified invoice with the following information:

  • Name and address of your company
  • CVR No. (Commercial Register Number)
  • Consecutive number (invoice number)
  • Date of issue (invoice date)
  • Quantity and types of goods supplied/scope or types of services rendered
  • The total amount of the invoice and VAT

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