How VAT (Moms) Works in Denmark
Denmark has a flat 25% VAT rate (moms) on almost all goods and services. Unlike many EU countries, there are no reduced rates — food, books, hotels, and luxury goods all pay the full 25%. If you run a business, here’s how to handle it.
What is moms?
Moms (merværdiafgift, literally “added value tax”) is Denmark’s VAT. It’s a consumption tax added to the price of goods and services. Businesses collect it from customers and pay it to SKAT, minus the moms they paid on their own business purchases (input VAT).
The 25% rate
Denmark’s VAT rate is a flat 25% — one of the highest in the EU. There are no reduced rates. Food, medicine, books, children’s clothing, hotel stays — all 25%. The only exemptions are: healthcare, education, financial services, insurance, and public transport (these are VAT-exempt, not zero-rated).
Prices displayed in Danish shops always include moms. The price you see is what you pay. Business-to-business invoices typically show the price excluding moms, then add it.
Who must register for VAT?
You must register if your business has revenue exceeding 50,000 DKK within 12 months. Below this threshold, registration is voluntary. Once registered, you must charge moms on all applicable sales and file quarterly returns.
How to register
Register for VAT during your business registration on virk.dk, or add it later if you cross the threshold. Registration is free and takes effect from the date you specify.
Charging moms on invoices
Add 25% to your net price on every invoice. Your invoice must show: net amount, moms amount, and gross total separately. Include your CVR number and the text “momsregistreret” or your moms registration number.
Input VAT deductions
You can deduct the moms you pay on business purchases from the moms you owe SKAT. This is input VAT (indgående moms). Example: you charge a client 1,250 kr (1,000 + 250 moms). You bought software for 625 kr (500 + 125 moms). You owe SKAT: 250 – 125 = 125 kr.
Deductible business purchases include: equipment, software, office supplies, professional services, business travel, and phone/internet (business proportion).
Keep all receipts. You need documentation for every input VAT deduction. Digital receipts are fine. Your accounting software should track input and output moms automatically.
Filing VAT returns
File through TastSelv on skat.dk:
- Quarterly: Most small businesses. Deadlines: 1 March, 1 June, 1 September, 1 November.
- Monthly: Businesses with revenue over 50 million DKK/year.
- Half-yearly: Businesses with revenue under 5 million DKK/year (can opt in).
Late filing results in a reminder fee (800 DKK) and potential interest charges.
EU and international sales
- B2B within EU: Reverse charge applies — you invoice without moms, the buyer self-assesses in their country. You need the buyer’s VAT number.
- B2C within EU: Complex. You may need to charge the buyer’s country’s VAT rate above certain thresholds (OSS scheme).
- Sales outside EU: Zero-rated (no moms charged). You still report them on your VAT return.
Common problems
I charged moms but my revenue is under 50,000
If you voluntarily registered, you must continue to charge and report moms. You can deregister if you consistently stay under the threshold.
I forgot to file my VAT return
File immediately. SKAT charges an 800 DKK reminder fee per late return. Continued non-filing can result in estimated assessments (usually higher than your actual liability).
Questions and answers
Do consumers ever get moms refunded?
Non-EU tourists can claim a VAT refund on purchases over 300 DKK when leaving Denmark (Tax Free shopping). Danish residents cannot.
Can I deduct moms on meals and entertainment?
Only 25% of moms on restaurant meals for business purposes. No deduction on entertainment or gifts. SKAT is strict on this.