How does VAT (moms) work in Denmark?

## Danish Moms (VAT) — The Essentials\n\nDenmark's value added tax is called moms (merværdiafgift) and operates at a flat 25% standard rate — the highest standard VAT rate in the EU. Denmark deliberately maintains a single rate (unlike the UK's 20%/5% system or Germany's 19%/7% structure) as a matter of both policy simplicity and revenue efficiency.\n\nMoms was introduced in Denmark in 1967 and is administered by SKAT (Skatteforvaltningen) through the TastSelv Erhverv portal.\n\n## Registration Threshold\n\nBusinesses must register for moms when annual taxable supplies exceed DKK 50,000. This is one of the lower thresholds in the EU (compared to UK's £90,000 or Germany's €22,000). Most active Danish businesses will cross this threshold quickly.\n\nVoluntary registration is available below DKK 50,000 — useful if the business has significant moms-bearing costs it wants to reclaim.\n\n## Moms Rates in Denmark\n\n| Rate | Category |\n|------|----------|\n| 25% | Standard rate — most goods and services |\n| 0% | Exports outside EU, certain newspapers, some passenger transport |\n| Exempt | Financial services, insurance, healthcare, education, residential property rental |\n\nThere is no reduced rate (5%, 6%, 12% etc.) in Denmark. The 0% rate and exempt categories are narrow. Most B2C transactions in Denmark are subject to 25% moms.\n\n## Setting Up a Moms Account\n\nRegister for moms via TastSelv Erhverv at skat.dk. The process requires:\n1. Log in using NemID/MitID business credentials\n2. Navigate to 'Ny registrering' (new registration)\n3. Enter expected annual turnover and turnover start date\n4. SKAT assigns a moms registration number (CVR number is used — same as company registration)\n5. Your first filing period is determined based on expected turnover\n\nRegistration confirmation arrives within a few days. Retrospective registration (if you should have registered earlier) requires declaring all moms owed from the point the threshold was crossed.\n\n## Filing Periods\n\nFiling frequency depends on annual taxable turnover:\n\n| Turnover | Period | Deadline |\n|----------|--------|----------|\n| Below DKK 5m | Semi-annual | 1 August (Jan-Jun), 1 February (Jul-Dec) |\n| DKK 5-50m | Quarterly | Last day of second month after quarter |\n| Above DKK 50m | Monthly | 25th of following month |\n\nNote: The filing deadline for new businesses is initially semi-annual regardless of turnover, unless you voluntarily request more frequent reporting.\n\n## Input Moms — What You Can Reclaim\n\nRegistered businesses reclaim moms paid on business expenses (indgående moms / input moms). The general rule: if the cost is wholly for the business, 100% input moms is reclaimable.\n\nKey exceptions where no input moms can be reclaimed:\n- Passenger cars (personbiler) — no moms reclaim on purchase, petrol, insurance, or maintenance\n- Client entertainment and restaurant meals where clients are present\n- Costs relating to exempt activities (financial services, insurance)\n\nSpecial cases:\n- Commercial vans (varevogne) used exclusively for business: 100% input moms on purchase and running costs\n- Mobile phones and internet: complex rules — typically 50-100% depending on personal/business use proportion\n- Taxis: 25% input moms reclaimable when used for business travel\n\n## Moms on B2B vs B2C Sales\n\nFor B2C sales (to Danish consumers): always charge 25% moms on top of your price.\n\nFor B2B sales to Danish companies

charge 25% — the customer can reclaim it as input moms.\n\nFor **B2B sales to EU-registered VAT businesses**: zero-rated (reverse charge mechanism). The customer declares and pays moms in their own country. You must verify the customer's EU VAT number and include the transaction on your EC sales list (EU-salgsangivelse).\n\nFor **exports outside the EU**: zero-rated. Keep evidence of export (customs declaration, shipping documents).\n\n## The Moms Return\n\nThe momsangivelse (VAT return) includes:\n- Salgsmoms (output moms on sales)\n- Salgsmoms på EU-leverancer (output on EU supplies)\n- Exportleverancer (exports)\n- Momspligtige køb (taxable purchases)\n- EU-køb (EU purchases)\n- Indgående moms (input moms reclaim)\n- Net moms payable or reclaimable\n\nAll filed electronically via TastSelv Erhverv. Accounting software (e-conomic, Dinero, Billy) integrates directly with TastSelv for automatic submission.\n\n## Late Filing Consequences\n\nDKK 800 per late return. Interest on overdue moms. Repeated late filing triggers SKAT audits and can result in mandatory monthly reporting. SKAT sends automatic reminders but the obligation to file on time rests with the business.