What is Moms (Value Added Tax)?

Denmark introduced moms in 1967 and has maintained a single standard rate (currently 25%) with no intermediate reduced rate — a deliberate policy choice that simplifies administration but makes Denmark one of the most expensive countries for consumer goods and services. The EU standard requires member states to allow a reduced rate; Denmark operates an exception.\n\nZero-rated supplies include: exports outside the EU, international transport, certain newspaper and periodical subscriptions, and some financial services. Exempt supplies (where no moms is charged and input moms on related costs is not reclaimable) include: most financial services, insurance, healthcare, and residential property rental.\n\nRegistration threshold: DKK 50,000 of annual taxable supplies triggers mandatory moms registration. This is among the lowest thresholds in the EU, meaning most businesses register quickly. Voluntary registration is possible below the threshold.\n\nInput moms recovery: Registered businesses reclaim all moms paid on business purchases. Key exceptions: passenger cars (no moms reclaim on purchase or running costs, except for specific business types like car dealers and taxi operators), business entertainment above certain limits (25% deductible for income tax but moms situation is complex).\n\nFiling periods: determined by annual turnover. Semi-annual (below DKK 5m): returns for January-June due 1 August, July-December due 1 February. Quarterly (DKK 5-50m): due on the 1st of the third month after quarter end. Monthly (above DKK 50m): due on the 25th of the following month.\n\nAll returns filed via TastSelv Erhverv (skat.dk business portal). Penalties: DKK 800 per late filing plus interest on late payments. Repeated non-compliance can trigger mandatory monthly reporting and enhanced scrutiny.\n\nMoms groups: related businesses under common ownership can register as a moms group, simplifying inter-company transactions. Useful for holding/operating company structures.