Registering a Company As An VAT Payer

How to calculate VAT

The basic principle of the VAT rules in Denmark is that you add 25% VAT on the selling price of your goods while deducting the VAT when you buy goods. VAT registered companies must charge VAT on virtually all goods and services they sell in this country.

Sales VAT is the VAT you charge from your customers when they have purchased a product or service from you. Sales VAT is also called outgoing VAT.

shopping VAT is the VAT that you are charged when you purchase a product or service from others. Purchasing VAT is also called incoming VAT. 

When you are VAT registered, you receive a deduction for the goods or services you buy from others, and you can deduct the purchase VAT from your accounts.

Get started reporting VAT

All VAT registered companies must make VAT reporting every six months, quarter or month – depending on the company’s turnover.

If you have no purchase or sales tax during a VAT period, you still have to report. Instead of reporting as usual, do a zero report.

Do you need help with accounting or reporting VAT? Click here

When can I get a VAT deduction?

It is the nature and purpose of the purchase that determines whether you can receive a deduction. That is, it is crucial whether you should use the purchase for your VAT or VAT-free business or whether you should use it for private purposes. You can only deduct VAT on expenses that you spend on your taxable business.

Ready to register your company as an VAT payer?

Our team at DKkonsult will assist you in preparing all required documentation and will submit the application for a VAT number within 10 to 15 minutes upon receipt of complete and relevant information as well as payment for the service.