VAT Registration in Denmark - Thresholds and Procedure

VAT registration in Denmark is performed as per certain thresholds. Companies that make taxable goods or offer taxable services are required to register once they surpass this value. For non-resident companies there is no registration threshold – these companies must register for VAT purposes. Our team of agents who specialize in company registration in Denmark can provide investors with complete information on the current VAT registration procedures, the liabilities and the responsibilities that fall onto registered legal entities.

Quick Facts
We offer VAT registration services	Yes
Standard rate	25%
Lower rates	0%
Who needs VAT registration	Companies offering goods or services subject to VAT exceeding DKK 50,000
Time frame for registration	Approximately 3 weeks
VAT for real estate transactions	25% on sales of new buildings and building land; other sales and letting of real property are generally exempt
Exemptions available	Hospital, medical, dentistry services, education, cultural and artistic activities, renting and leasing immovable property, the supply of immovable property, insurance and reinsurance services, passenger transport, foreign exchange and securities transactions, etc.
Period for filing	Monthly filing and payments when the annual turnover exceeds DKK 50 million; a quarterly term applies when the annual turnover is between DKK 5 million and DKK 50 million and a half-yearly filing and payment when the turnover is below DKK 5 million
VAT returns support	Upon request
VAT refund	In certain cases, such as when the goods or services are acquired for commercial use or when the business is based in a country outside the EU. Refunds are limited and do not apply to purchases related to food for the business owner and employees, ongoing accommodation for the business owner and employees, entertainment purchases, the acquisition or repair and operation of motor vehicles for less than nine persons.
Local tax agent required	EU, Norway, Iceland, Faroe Islands or Greenland businesses are not required to register for Danish VAT through a fiscal representative, although they can choose to do so.
Who collects the VAT	The Danish Tax Agency (Skattestyrelsen)
Documents for VAT registration	– VAT registration form, – copy of Articles of Association, – extract from Trade Register, – certificate of VAT liability, – proof of activity within Denmark, – power of attorney for our Danish lawyers (if applicable), etc.
VAT number format	DK + 8 digits
VAT de-registration	Companies must deregister within 8 days from the moment they stop providing these services. Our lawyers can help.
VAT registration for sole traders	Mandatory if annual taxable turnover exceeds DKK 50,000 (voluntary below).
VAT registration for branches (YES/NO)	YES, if engaged in taxable activities.
VAT registration for liaison offices (YES/NO)	NO
VAT registration for e-commerce activities	As per the European Union taxation scheme, if annual threshold exceeds 10,000 euros.
Record-keeping requirements	5 years
Invoice content	– invoice number, – date of issue, – name and address of supplier and customer, – registration number of the supplier, – VAT rate and VAT base, – quantity and description of goods/services
Simplified invoices	Typically for sales below DKK 3,000.
Annual VAT return	Not required
Frequency of VAT returns	Can be bi-annually, quarterly, or monthly, depending on your annual turnover. Our attorneys in Denmark can give more details.
Penalties for VAT returns	– DKK 800 per declaration for not filing returns, – a monthly interest rate of 0.7% for late payments
Reverse charge mechanism	Usually used for cross-border transactions to prevent double taxation issues.

Which VAT registration services could be offered by your team in Denmark?

The following VAT-related services could be provided to Danish and foreign clients by our business experts:

VAT compliance reviews;
EU VAT and cross-border issues;
requirements of reverse charging;
VAT documentation and invoices;
One Stop Shop (OSS) registration and compliance;
taxation of import and export transactions;
input VAT deduction reviews;
VAT deregistration and compliance.

What are the Danish VAT registration requirements for a foreign company?

There are certain situations in which VAT registration will be required even without starting a company in Denmark, as per the Danish legislation; these are most often similar throughout EU countries, and it will be applied when:

the company offers services for private individuals in Denmark;
the company provides services to a registered Danish company that is not under the reverse charge regime (other than exempted services, please see below);
the company hires sub-contractors and they provide services to the foreign company during its activities in Denmark.

Below, find more information on VAT registration in Denmark from this infographic:

What are the VAT rates in Denmark in 2026?

Denmark applies a standard VAT rate of 25%, in accordance with the EU VAT directive, and has no reduced rates. Nevertheless, there is a zero rate (0%) that applies to certain supplies, e.g. newspapers etc.

Are there requirements for VAT registration for a local company?

Yes, Companies that surpass the VAT registration threshold of 50,000 DKK are required to register for value-added tax purposes. Company VAT registration in Denmark is expected to last for approximately three weeks from the moment of the application submission.

How the VAT registration process in Denmark works?

The general registration process includes the following steps:

fill in the application: the first step is to obtain MitID Erhverv; this also means registering the company with the authorities.
provide documents: along with the registration form, the applicant also submits passport copies or other relevant identification documents.
notice: the registration certificate with the Danish authorities is sent at the indicated postal address.
compliance: once the company is registered for VAT purposes, the taxable individual is required to declare the VAT accordingly, for each taxable period.

Is it possible to claim VAT deduction on expenditure for a Danish company?

Yes, businesses that are VAT-registered can deduct their input VAT on purchases that have been used for business purposes. This includes the following:

Purchase should be business-related.
Business must have valid documentation such as invoice.
Expenditure that is personal or non-business-related cannot be deducted.
Deduction can be partial where there is mixed use of expenditure.

What are the VAT settlements deadlines in Denmark in 2026?

Quarterly VAT settlements are submitted with the following deadlines for 2026/27:

The first quarter of the year: 1 June 2026;
The second quarter of 2026: 1 September;
The third quarter of 2026: 1 December 2026;
The fourth quarter of 2026: 1 March 2027.

Companies that have requested the monthly VAT settlement (or those that have their VAT taxable revenue over DKK 50 million per year) will follow the deadlines such as:

27 April for the March 2026 settlement period;
26 May for the April period;
25 June for the May 2026 period.

You can also watch the following video for details:

What are the VAT accounting requirements in Denmark?

The Danish Tax Authority must be able to check the VAT calculation process of any company registered for VAT by keeping records on:

Sales/outputs of VAT;
Purchases/deductible input VAT;
Transactions within the European Union;
Reverse charge transactions;
VAT exempt transactions.

Are there any activities exempted from VAT?

Yes, there are certain goods and services that are exempt from VAT, such as:

hospital treatments and medical practice;
charity and social security work;
educational activities, as long as they are not aimed at businesses and made for the purpose of profit;
cultural activities related to museums, libraries or zoos; not so in the case of radio and TV broadcast, or live performances, which are subject to VAT;
rental and leasing of property, with the exception of rooms in hotels or advertising space;
insurance services;
financial activities;
postal services.

For more information regarding the VAT or other special taxes, please contact our experts in company formation in Denmark.