Danish VAT and TAX
As a foreign company established in Denmark, you must pay VAT in Denmark when you sell goods and services. In some cases, your company must also pay Danish taxes on any profit generated by your company.
If your company has employees, it is your responsibility to withhold Danish tax and labour market contribution from the wages that you pay to your employees for the work they carry out in Denmark.
When do you have to register for VAT in Denmark?
You have to submit the application for VAT registration in Denmark at the latest 8 days before you start doing business in Denmark. If you do not submit the application in time or not at all, or the information that you have provided is not correct or insufficient, you may be sanctioned with a fine.
How to register your company?
If you have a Danish NemID and you want to register your company as Danish company you can do it online at Virk.
If you do not have a Danish NemId you can register a company and obtain a CVR-number by filling out a form “Registration of Non-Danish Company – Start-40.112”, which you will find here.The filled out form can be uploaded via Business in Denmark or sent to e-mail: firstname.lastname@example.org.
Along with the registration application you must send copy of your passport, if you wish to be registered as sole proprietor or a copy of the company’s registration certificate in your home country if you already have a registered company within the EU.
The registration certificate with th Danish CVR/SE-number will be sent to the noted postal address.
When you have registered your company for Danish VAT, you must declare VAT for each VAT period. Information about the VAT period is given in connection with registration. You must declare VAT via the Danish Tax Agency's online tool TastSelv Erhverv. The tool is in English and Danish.
You will receive a password to TastSelv Erhverv, which you must activate within 30 days. You must use this password every time you log in to TastSelv Erhverv.
If you forget to declare your VAT, the Danish Tax Agency will automatically assess the VAT amount you have to pay. You will also be charged a fee and interest, if any.
Learn more on how to declare VAT on the Danish Tax Agency's website.
Payment of VAT
You must pay your VAT when you declare your VAT. Payment is made by international transfer. The Danish Tax Agency will inform you of the account, where you must pay your VAT.
If you have a bank account in Denmark (Nemkonto) you can pay your VAT via online banking or via Nets (PBS). If you want to pay VAT via Nets (PBS), you have to apply for it in the TastSelvErhverv.
Learn more about the payment of VAT by international transfer at www.sktst.dk.
When do you have to deregister your company?
If you stop doing business in Denmark you have to deregister your company within 8 days. This means that you close your company in terms of VAT. You can always request the same VAT number, if you decide to do business in Denmark again. You can also deregister your company for some of your duties, for instance your duties as an employer, without closing your company.
You can close your company or deregister for some of your company’s duties by filling out this form. This form is only in Danish.
If you have registered your company as a Danish company, you can deregister your company directly at Virk. The form is only in Danish.
Where can you get more information on VAT and other taxes?
For technical assistance regarding registration of your company, contact the Danish Business Authority at +45 7220 0030.
For legal assistance regarding VAT, excise and customs duty, contact the Danish Tax Agency at +45 7222 1818.
TAX when you do business in Denmark
When you as a foreign company do business in Denmark, you must, in some cases, pay tax in Denmark on any profit generated by your company. This applies if your company establishes:
- A place where the company is managed
- A branch
- An office
- A factory
- A workshop
- building, construction, assembly or installation work, or a supervision company in company in connection with these works over a certain period of time. The time period depends on the individual agreements between Denmark and your country. Normally the time period is between 6 to 12 months. If your business activities in Denmark exceeds this time period, your company will be regarded as established permanently in Denmark.
What to do when your company has employees?
When you establish a company in Denmark and you have employees that carry out work in Denmark, you must register as an employer. If you already have a Danish CVR/SE-number, you can register as an employer by using this form. The form is only in Danish. You have to send the form to the Danish Business Authority by email@example.com
When you have registered as an employer in Denmark, you must deduct tax and labour market contribution of 8 % (in Danish called AM-bidrag) from each wage payment. You have to declare and pay the tax and AM-bidrag to the Danish Tax Agency on a monthly basis via the Danish Tax Agency´s online tool TastSelv Erhverv under the heading ‘eIndkomst’.
Where can I get more information on tax?
For legal assistance regarding tax, contact the Danish Tax Agency at +45 7222 1818
Ring op: +45 7222 1818 or at www.sktst.dk.