Denmark starts applying interest to VAT corrections from 1 July 2023
Denmark starts applying interest to VAT corrections from the day following the deadline. From 1 July 2023, the 14-day period of grace is not applicable anymore.
The Danish authorities have started calculating the late payment interest from the day following the original deadline. The 14-day period of grace is not applicable anymore from 1 July 2023.
Prior to 1 July 2023, there was a 14-day deadline for making a correction on the VAT payments, in case you have to pay additional VAT, as well as for the payment of the VAT assessment made by the Tax Agency in case of lack of submission of the VAT return. During this 14-day deadline, no interest was accrued on the tax debt.
From 1 July 2023, interest accrues on the tax debt from the original payment deadline. The annual interest rate is around 8.5 %. Have a look here at the official information.
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Have a look here at other VAT news from Denmark.