Denmark levies a value-added tax (VAT) on the supply of most goods and services in the country, including intra-community supplies and imports. The standard rate of VAT is 25%, and certain supplies are zero-rated or exempt.

Zero-rated Supplies Include:

Exports and related services;
Intra-community supplies of goods; and
Intangible services supplied to a taxable person established in the EU or a recipient outside the EU.

Exempt Supplies Include:

Medical services;
Education;
Financial services;
Insurance;
Cultural services;
Transport of passengers; and
Leasing of real estate.

Registration Threshold

The VAT registration threshold in Denmark is the turnover of DKK 50,000. Aside from the distance selling threshold of DKK 280,000, there is no threshold for non-residents without an establishment in Denmark.

Mini One Stop Shop (MOSS) Scheme

MOSS is an optional online service provided to taxpayers who provide electronically supplied services, telecommunication, and broadcasting services to consumers in the EU Member States. MOSS Scheme entered into force on 1 January 2015. Under the scheme, an opportunity is given to the taxpayer to register in one EU Member State (referred to as the Member State of Identification) and declare all supplies covered by the special scheme and pay the VAT due on these supplies. If a taxpayer exercises the option for MOSS, there is no obligation to register, file tax returns and issue VAT payments in each Member States where electronically supplied services, telecommunications, and broadcasting services are carried out.

VAT due for supplies covered by the MOSS is paid via the Member State of identification. Payments have to be made to a special account designated for the MOSS supplies. Payments are linked to the underlying VAT returns and have to be made when submitting the return, or latest by the 20th day of the month following the return period.

Note that input taxes cannot be deducted by using MOSS. Input tax credit has to be availed through the VAT refund mechanism.

A taxpayer using the MOSS can opt-out of the scheme, regardless of whether it continues to supply services that are eligible for the special scheme by providing a prior notice of at least 15 days before the end of the calendar quarter to the Member State of Identification. Once opted-out, the taxpayer will be excluded from using the MOSS in any Member State for two calendar quarters (quarantine period).

There are two schemes within the Mini One Stop Shop scheme:

The non-Union scheme for taxable persons that have no establishment within the EU; and
The Union scheme for taxable persons that have an establishment within the EU (but are making supplies to the Member States in which they are not established).

MOSS cannot be used in relation to the following:

Supplies of services other than telecommunications, broadcasting or e-services;
Supplies to non-taxable customers in a Member State where the supplier has established his or her business or has a fixed establishment (VAT on those supplies will be accounted for in the normal VAT return of that Member State);
Business to business supplies (including telecommunications, broadcasting or e-services); and
Supplies of goods.

VAT Return and Payments

A taxable person with turnover exceeding DKK 50 million is required to submit VAT returns on a monthly basis by the 25th day of the following month. A taxable person with a turnover of between DKK 5 million and DKK 50 million is required to submit returns on a quarterly basis (monthly returns are optional) and a taxable person with turnover of less than DKK 5 million is required to submit returns on a half-yearly basis by the first day of the third month following the end of the return period.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, Denmark adopted a measure allowing qualifying SMEs to request an interest-free loan for VAT payments due on 1 June 2021 for the first quarter of tax year 2021 to be repaid by 1 November 2022.

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