Denmark is a member of the European Union (EU) Member State trading bloc, which may affect international VAT collection and regulations. Denmark’s consumption tax is called the Value-added tax (VAT), locally known as Merværdiafgiftsloven (Momsloven), which was introduced in July 1967.
What is Danish VAT called?
Denmark introduced VAT, known as moms, in 1967. It is administered by SKAT, the Danish Customs and Tax Administration.
Does Denmark have VAT numbers?
Danish VAT numbers have 10 characters [DK + 8 digits].
How does VAT work in Denmark?
According to the Danish VAT Act, a foreign supplier who installs and/or assembles goods in Denmark has to register for VAT and issue an invoice with 25% Danish VAT if the supply is to a non-taxable person. If the recipient is registered for VAT in Denmark, the foreign supplier cannot register for VAT in Denmark.
Does Denmark charge VAT to UK?
Sales of goods to the UK
Sales of goods to countries outside the EU are exempt from VAT. This applies regardless of whether the buyer is a company or a private individual. Thus, you can issue an invoice without calculating Danish VAT on sales to the UK, as the product leaves the EU.
Who pays Denmark VAT?
Your business must pay VAT if it sells goods or services in Denmark. VAT is a 25% tax added to the price of the goods and services you sell. The VAT registration must take place no later than 8 days before your business starts up activities subject to VAT in Denmark.