Denmark VAT Rates and Compliance (2026)

Learn about Denmark’s 2025 VAT rates, registration rules, invoicing, and compliance tips for businesses selling goods or digital services.

By Nate Matherson

Nate is the Head of Growth at Numeral. He has founded multiple venture-backed companies and is a two-time Y Combinator Alum. He is based in Charleston, SC.

Reviewed by Charles Purdy

Charles works closely with a Numeral team as a freelance editor. He works hard to ensure that our guides and tutorials are easy to read and helpful. In previous roles, Charles served as the Managing Editor at Carbon Health and worked as a Content Manager at Adobe. He is presently based in San Francisco, California.

Published: June 16, 2026

Tax Rate

25%

Non-Resident Threshold

• First sale

Taxable Transactions

• B2B Sales
• Reverse charge
• B2C Sales: Yes
• Digital Goods

Similar to sales tax in the U.S., value-added tax (VAT) is a standard consumption tax collected by many countries. Unlike sales tax, VAT is applied at each stage of the supply chain. Businesses collect VAT on sales (outputs) and claim credits for VAT paid on purchases (inputs).

Worldwide, VAT is the most common type of consumption tax, and it is imposed by all EU member states. These countries follow the same general EU VAT framework; however, each member sets its own rates and rules.

For companies selling to customers in Denmark, Danish VAT rules apply. Accurate invoicing, timely reporting, and proper recordkeeping are essential, particularly given Denmark’s reputation for rigorous tax enforcement.

One VAT rate

Denmark stands out in the EU with a single standard VAT rate of 25%, the highest among EU states.

Zero-rated products

Zero-rated products are taxed at 0% but allow purchasers to claim VAT credits on inputs. In Denmark, these include:

• Exports
• International passenger transport
• Some newspapers
• Certain seagoing vessels

Exemptions include:

• Financial and insurance services
• Healthcare and medical services
• Education
• Residential letting and sale of used residential property
• Cultural and sports activities run by nonprofits
• Betting and lotteries

Registering for VAT

Any business making taxable sales in Denmark above the registration threshold must register for VAT. The Danish Tax Agency (Skattestyrelsen) manages registrations through the MOMS system.

Once registered, businesses must fulfill compliance obligations, including filing returns, maintaining records, issuing invoices, and submitting to audits.

Resident vs. non-resident businesses

• Resident businesses must register when annual taxable turnover exceeds DKK 50,000.
• Non-resident EU businesses can register directly with the Skattestyrelsen.
• Non-EU businesses must appoint a Danish fiscal representative.

Who needs to register

• Domestic suppliers of taxable goods or services
• Distance sellers not using the OSS scheme
• Event organizers collecting admission in Denmark
• Online marketplaces that qualify as deemed suppliers under EU e-commerce rules

How to register

Registration is done online through the Business in Denmark portal (Virk). Businesses should apply at least eight days before taxable operations begin.

Working with a tax representative

EU-based businesses may choose to work with a local agent for assistance. For non-EU businesses, this is not optional, and representatives must meet Danish criteria.

When to charge tax (EU and Denmark)

VAT liability hinges on where the supply occurs, the nature of the goods or services, and whether the customer is a business or a consumer.

Taxable products and exempt products

Taxable:

• Physical goods
• Software, SaaS, and apps
• Digital goods, E-books and streaming subscriptions
• Restaurant and catering services

Exempt:

• Financial and insurance services
• Healthcare
• Education
• Residential property

B2B vs. B2C sales

• B2B sales within the EU: Typically exempt under the reverse charge mechanism when a valid VAT number is provided.
• B2C sales within the EU: Danish VAT applies when the customer is in Denmark.

Marketplace facilitators

Since July 2021, online platforms can be deemed suppliers in specific scenarios. They collect Danish VAT and fulfill VAT obligations for their sellers.

VAT deductions

VAT paid on business expenses is usually deductible. However, deductions depend on usage:

• Used only in taxable activity: 100% deduction.
• Mixed use: Must be apportioned.

Staying compliant with Danish VAT regulations

Compliance rests on three pillars: issuing valid invoices, filing returns on time, and preserving accurate records.

Invoicing requirements

Invoices must include:

• A unique sequential invoice number.
• The date issued.
• Full names and addresses of supplier and customer.
• Supplier’s CVR/VAT number.
• Description of goods or services provided.
• Quantity and unit price of each item.

Filing VAT returns

All VAT returns must be submitted electronically through TastSelv. Filing frequency depends on annual turnover:

• Monthly for exceeding DKK 50 million
• Quarterly for DKK 5 million to DKK 50 million
• Semi-annual for below DKK 5 million

Recordkeeping Requirements

Businesses must retain all records for a minimum of five years:

• Sales and purchase invoices
• Bank statements and receipts
• VAT returns and supporting documentation

Risks of noncompliance

Failing to meet VAT obligations can lead to significant consequences, including fines and penalties.

Tips on staying compliant with Danish VAT regulations

Businesses should register promptly, validate EU VAT numbers, use invoice templates, and monitor deadlines.

Software solutions

Leveraging dedicated tax technology can greatly reduce compliance burdens.

Final thoughts

Denmark’s VAT system is relatively simple, but businesses must register on time, issue valid invoices, and keep detailed records. Managing compliance proactively is essential.