VAT in Denmark

Since 1992 the VAT rate (Danish: MOMS) in Denmark has been 25 %. Only a few services have a reduced VAT rate e.g.:

  • public transportation of private persons
  • health care services
  • newspaper publishers
  • rental income on e.g. private premises.

Find more services here that are exempt from VAT.

The VAT rate is one of the highest in Europe, currently the same as the VAT rate in Norway (25 %) and VAT rate in Sweden (25 %). For comparison, the VAT rate in Germany is 19 %.

The development of the VAT rate has been increasing since 1962, but unchanged since 1992:

Year VAT rate in Denmark
1962 9%
1967 10%
1968 12.5%
1970 15%
1977 18%
1978 20.25%
1980 22%
1992 25%

VAT refund / declaration

If you have a Danish registered business and are registered for VAT, you are obliged to declare VAT online. The declaration has to be made at the end of the accounting period as described when your company was formed (it can be either every 1, 3 or 6 months).  Even if you didn’t have any activity for the period, you still have to declare it. In this case, you have to file a nil return.

The declaration has to be made online in the “TastSelv Erhverv”-system which currently only is available in Danish. If you are a client of IncorporateInDenmark.com, we will do this for you.

When you’ve filed for a refund, the amount will normally be refunded to your bank account within a week and at the maximum three weeks from the filing date.

If you fail to declare your VAT, you will be subject to a fee.

VAT registration

If you haven’t already registered for VAT, then here is what you need to know.

As a general rule you have to register for VAT and in most cases, this is something you do when incorporating the company. If you didn’t register for VAT when you incorporated your business, then here’s the rules:

If you are self-employed, and your business’s sales are less than DKK 50,000 over a 12-month period, it is voluntary to register for VAT.

If your revenue is more than DKK 50,000 over a 12-month period, or you expect it to be, you are obliged to register for VAT.