VAT returns in Denmark and the new reconciliation functionality

The new reconciliation functionality

VAT returns in Denmark include, from June 2023, a new functionality introducing an automatic reconciliation of the EU and exempt transactions. In practice, control remarks will pop up in the following scenarios:

• When the system identifies mismatches between the amounts reported in the European Sales Listing return and in the VAT return that you are completing. This corresponds to intra-Community supplies of goods and services.
• Also, the intra-Community acquisition amounts will be compared with the information reported abroad. Members States share the information on intra-Community supplies made to Danish VAT numbers, allowing this reconciliation.  
• Also, in case there is a significant difference in the amounts of VAT-exempt transactions compared with the amounts reported the previous year.

What happens when the system identifies mismatches?

Therefore, when the system identifies mismatches between the amounts reported in the VAT return and the information already available, an additional screen will appear with control remarks. In this screen, you will need to review the control remarks launched by the system, and, in consequence, you will be asked to:

• Confirm that the amounts introduced in the VAT return that you have just submitted are correct.
• Confirm whether you need to correct the VAT return or the ESL return.

For correcting the VAT return that you have just submitted, you will need to simply press the option Correct report, while if you need to correct the ESL return you will need to obtain the receipt of submission of the VAT return.

Other updates on the VAT returns

As an additional update on the VAT returns system, the receipt of submission of the Danish VAT returns now include:

• The final VAT position highlighted – to pay or to be refunded, as well as the different ways of payment.
• Also, a Comments folder, where the different comments from the system and replies of the taxpayer will be reflected.

Find the official information here.

VATify automates ESL and VAT return reconciliation

VATify is Marosa´s VAT reporting software. With our solution, you will anticipate this new requirement in Denmark, as VATify already does a reconciliation between your ESL and VAT return data. There are hundreds of additional checks done over your data while the VAT return is generated automatically.