Denmark Sales Tax VAT

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In Denmark, VAT is generally applied at one rate, and with few exceptions is not split into two or more rates as in other countries (e.g. Germany), where reduced rates apply to essential goods such as foodstuffs. The current standard rate of VAT in Denmark is 25%.

If a company not established in Denmark is providing ‘taxable supplies’ of goods or services in Denmark, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.  

It is important that all businesses with any commercial activity in Denmark assess their compliance obligations and register prior to commencing taxable transactions if applicable.

There are various scenarios that would trigger an obligation to register for VAT in Denmark. Some of the most common examples are:

  • Importing goods into Denmark from outside the European Union
  • Buying and selling goods in Denmark
  • Selling goods from Denmark which are delivered to customers outside of Denmark (business or private customers)
  • Acquiring goods in Denmark from another EU country (Intra-community acquisitions)
  • Holding inventory in Denmark for sale, distribution or consignment
  • E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
  • Organising events in Denmark where attendees or delegates must pay admission

If you wish to apply for Sales Tax in Denmark, please register in the form below the reasons for needing sales tax VAT in Denmark or send us an email.