DenmarkManual

VAT returns in Denmark

Frequency of VAT returns in Denmark

The frequency of filing of the periodic VAT returns depends on the annual turnover of the previous year in Denmark. If your business has just registered for VAT, you must report VAT quarterly for at least one and a half year.

The following reporting periods apply under the normal regime:

  • Frequency of filing

    • Monthly
      You must report VAT monthly if the company's taxable turnover is over DKK 50 million, or if you have requested this periodicity.
    • Quarterly
      You must report VAT quarterly if your company has either just started, if you have applied for it yourself, or if the company's VAT-liable turnover is between DKK 5-50 million. DKK per year.
    • Bi-annual
      You must report VAT every six months if your company's taxable turnover is less than DKK 5 million. DKK threshold is calculated annually, and you have reported and paid in on time.

Due date of Danish VAT returns

The VAT return deadlines applicable in Denmark depend on the reporting frequency:

  • Due dates

    • Monthly
      By the 25th day of the following month.
    • Quarterly
      By the 1st day of the third following month.
    • Annual
      By the 1st day of the third following month.

Check the exact deadline in the tax calendar published by the tax authorities, or in the taxpayer’s online account for submitting VAT returns.

More information about due dates for making VAT payments and submitting the periodic VAT returns is available in the tax calendar published at the website of the tax authorities.

VAT payments in Denmark

Non-established companies will often make payments from an overseas account.

The following details are used for paying taxes from abroad when you choose the method of paying via bank transfer:

  • Name of the recipient: Danish Tax Agency
  • IBAN code: DK87 0216 4069 1633 94
  • SWIFT or SWIFT code: DABADKKK
  • Payment reference (Meddelelse til modtager): 8-digit CVR.no/SE no. (Only numbers - no other messages).

Have a look here at the information about how to pay taxes from abroad in Denmark.

VAT Refunds in Denmark

The excess of input VAT is automatically and immediately refunded to the taxpayer. This is, when a taxable person declares more VAT deductible – e.g., due to purchases-, than VAT collected from sales, the difference is a VAT credit which shall be reimbursed to the taxpayer.

Before the tax authority can pay out the VAT credit, the following conditions must be met:

  • You have activated your NemKonto to transfer the money.
  • You have reported all the relevant transactions and meet reporting obligations (e.g., VAT returns). In TastSelv Erhverv you can see if there is anything pending to be reported.
  • The payout limit on your tax account must be set to DKK 0. Check it in TastSelv Erhverv under Tax account.
  • You must not have debts on your tax account or with the Debt Agency. If you have debt, the money that you may have to your credit will first of all go towards paying the amount you owe. Remaining money will then be transferred to your company's NemKonto.

It can take up to 3 weeks from the date on which you make your VAT return before the amount that you may have to your credit will be available in your company's NemKonto.

On your company's tax account in TastSelv Erhverv under Account status , you can always see whether your receivables have been paid to your company's NemKonto or to the Debt Agency.

The right of deduction begins at the time when the VAT liability begins. If a person liable for VAT has forgotten to make VAT deductions for purchases in previous VAT periods, the person must request the Danish Tax Agency to resume the VAT liability for the period in which the purchase was made.

This is regulated in Art. 56 of the DK VAT Law. Also check here the section VAT to the credit.

Finally, read more about the Danish Tax Account and about the right of deduction.

Nil and corrective VAT returns in Denmark

A nil VAT return needs to be submitted even if there are no transactions to be reported for that period. You must then report DKK 0 (zero reporting). If you do not report, the tax authorities will make a temporary assessment for a value of DKK 800 of VAT.   

Errors or omissions in a VAT return must be corrected. You will need to submit a corrective VAT return by reopening the correspondent reporting period. Fines may be imposed.

Unless extraordinary cases, the statute of limitations that applies for correcting previous periods is 3 years.

Have a look at this article about the change on interest rate applies to VAT corrections.

VAT Penalties in Denmark

  • Cause
    Penalty
  • Late or missing filing 
    If you do not make your declaration, the tax authority will assess the outstanding amount based on an estimate, and you will be charged a penalty of DKK 800 and a reminder fee of DKK 65.
  • Late payment
    Additionally to the above, you will be charged interest for each day you do not pay. Therefore, the longer you wait, the more you will have to pay.
  • Late registration
    There is no specific penalty for late registration. However, late submission penalties will apply when regularizing past reporting periods.

Find here the official information about penalties.

Danish Tax Authorities contact

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