VAT and TAX
If your company is established or registered in your home country, but you provide services temporarily in Denmark, you or your employees may be obliged to pay taxes or VAT in Denmark.
Registration for VAT in Denmark
When you as a foreign company provide services temporarily in Denmark, you must, in some cases, pay VAT in Denmark. This applies to self-employed persons as well.
When do you have to register for VAT?
As a foreign company you have to register for VAT in Denmark if you:
- Provide services for private persons in Denmark
- Provide services to a registered Danish company that are not subject to reverse charge (other services than services provided in connection with an immovable property, transport of persons, restaurant and catering services and short-time hiring-out of means of transport)
- Hire sub-contractors that are providing services to your company when you are carrying out a task in Denmark
You have to submit the application for VAT registration at the latest 8 days before you start providing your service 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 for VAT?
You register for VAT by filling out the form ”Registration of Non-Danish Company – Start - 40.112”.
The registration certificate with your Danish VAT number (SE-nummer) will be sent to your postal address.
When you have registered your company for 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.
Learn more about the payment of VAT at skat.dk
When do you have to deregister for VAT?
If you stop providing services in Denmark you have to deregister your company for VAT 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 provide services in Denmark again.
You can deregister your company for VAT by filling out this form. The form can be sent via email to firstname.lastname@example.org or postal address Erhvervsstyrelsen Langelinie Alle 17 2100 København Ø.
Where can I get more information on VAT?
For technical assistance regarding VAT registration, contact the Danish Business Authority at +45 7220 0030.
For legal assistance regarding VAT contact the Danish Tax Agency at +45 7222 1818.
TAX when you provide services in Denmark
When you provide services in Denmark, your company or your employees must pay Danish tax, if:
- Your company is carrying out building, construction, assembly or installation work 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.
- You hire-out your employees to carry out work in Denmark for a Danish company. This is also called international hiring-out of labour. International hiring-out of labour is the term used when your company’s employees are hired out to a Danish company in order to carry out work that forms an integral part of the Danish company. Your hired-out employees must pay Danish tax and labour market contributions on their salary/wage earned by working in Denmark.
What to do when your company has established a place of business in Denmark?
You have to register your company in Denmark by using the application at our site.
You must withhold Danish tax and labour market contributions from the wages that you pay to your employees for the work they carry out in Denmark. In order to do that, you must register as an employer by using this application.
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’.
What to do when you hire-out your employees to carry out work in Denmark?
If you hire-out your employees to carry out work in Denmark for a Danish company, your hired-out employees must pay 8 % labour market contribution (in Danish AM-bidrag) and 30% gross tax of their total wage. Lear more on, how the tax is calculated at skat.dk
It is your client, the Danish company, who is responsible for withholding and paying this tax.
Every month you must provide your client, the Danish company, with information on your employee’s salary/wage in order to calculate your employee’s gross income and tax. If you do not provide this information, the Danish company must calculate the hiring-out of labour tax on the basis of the invoice amount.
Learn more about international hiring-out of labour at skat.dk.
If you have questions about international hiring-out of labour, you can contact the Danish Tax Agency by email email@example.com or by phone +45 72 22 18 18
Where can I get more information on tax?
For legal assistance regarding tax, contact the Danish Tax Agency at +45 7222 1818 or at skat.dk