VAT in Denmark 2026
VAT in Denmark, known as moms, is generally 25%. However, for a foreign company, the first step is not choosing a rate, but determining the place of taxation, the location of the goods, the status of the buyer and importer, and the possibility of applying reverse charge, OSS, IOSS, or the cross-border SME exemption.
Only after establishing the appropriate transaction model can the invoicing method, documentation, and company responsibilities be determined. The rules for obtaining a Danish VAT number and the Start 40.112 form , as well as momsangivelse, deadlines, and VAT reporting, are described in separate guides. Taxenlight also offers VAT registration abroad and VAT return processing abroad.
What do you need to know before selling in Denmark?
The standard VAT rate in Denmark is 25%, but correct calculation depends primarily on the tax location and transaction model. A company from another EU country should also check OSS, IOSS, and the cross-border SME exemption.
Basic rate
The standard VAT rate in Denmark is 25% and covers most taxable supplies of goods and services, unless the law provides for an exemption or other method of settlement.
Danish VAT
In Danish materials, invoices, and VAT systems, it is referred to as "moms." However, every use of the word "moms" should not be interpreted as requiring the seller to charge 25% VAT.
Currency
Danish VAT is reported and paid in Danish kroner. At a gross price of DKK 1,250, the tax included in the price is DKK 250, or 20% of the gross value.
Cross-border exemption
A company established in another EU country can benefit from the cross-border SME scheme in Denmark if it meets the conditions and does not exceed the EU limit and the applicable Danish threshold. The scheme is voluntary. Danish documentation indicates a total EU turnover limit of DKK 744,750 and the standard Danish threshold of DKK 50,000. Applications are submitted through the administration of the country of establishment.
B2C Sales in the EU
OSS can simplify the accounting for certain B2C sales taxed in Denmark. IOSS applies to selected sales of imported shipments with a value not exceeding EUR 150. OSS and IOSS do not automatically replace local obligations related to Danish warehousing, importation, or local sale of goods.
Change in scope of exemptions
As of January 1, 2026, some commercial fitness, exercise, dance, music, and similar classes will be subject to a 25% rate for services provided to individuals aged 30 and over. Official Skattestyrelsen materials indicate classes such as fitness, yoga, dance, music, and singing. Specific conditions depend on the type of activity, the age of the participant, and the level of turnover.
VAT rate in Denmark: 25%, exemptions and cross-border settlements
The standard VAT rate in Denmark is 25%. Denmark generally does not apply an extensive system of reduced rates, but provides for statutory exemptions and transactions where Danish VAT is not charged by the seller. Exemptions, reverse charge, exports, intra-EU deliveries, and SMEs should not be presented as reduced rates. The Skattestyrelsen (Skattestyrelsen) describes both the standard rate of 25%and statutory exemptions for specific goods and services.
| Element | What does it mean in practice? | What to watch out for |
|---|---|---|
| 25% VAT | The standard rate for most taxable supplies of goods and services whose place of taxation is in Denmark. | Not every transaction with a Danish customer requires the foreign seller to add 25% VAT. |
| VAT exemption | Certain services, including some health, educational, social, financial, cultural and real estate services, may be exempt if conditions are met. | The exemption is not a 0% rate. It may limit the right to deduct and in some cases result in Danish payroll tax. |
| Reverse charge or transaction without Danish VAT | For certain B2B services, EU deliveries and exports, the obligation may be transferred to the buyer or Danish VAT may not be charged if the conditions are met. | A valid VAT number and an invoice note alone are not sufficient. Confirmation of the taxable place, transaction type, and documentation is required. |
| 20% of the gross price | If the price already includes 25% VAT, the tax is 20% of the gross amount. | Do not calculate tax by multiplying the gross price by 25%. |
What has changed in Danish VAT from 1 January 2026?
As of January 1, 2026, 25% VAT applies to certain commercially conducted activities, including fitness, exercise, yoga, dance, music, singing, and some other recreational activities for individuals aged 30 and over. Registration is required once certain conditions are met, including those related to taxable turnover.
Teaching children and young people up to the age of 29 can still benefit from the exemption, but the service provider must properly separate taxable and exempt sales and document the age of the participants. In the case of a foreign service provider, the place of supply must also be determined—the mere presence of a Danish customer does not necessarily mean that Danish VAT will be charged. Details are published by the Skattestyrelsen in its article on VAT on teaching movement, music, and singing from 2026.
How do I check if a transaction is subject to VAT in Denmark?
Don't start by asking whether to apply the 25% rate. First, check the tax location, the buyer's status, and the settlement mechanism.
Determine the subject
Are you selling a product, service, event access, real estate, transportation, educational services, exercise classes, or e-commerce?
Check the buyer
Is the customer a taxpayer, a consumer, a Danish company, a company from another EU country, or an entity from outside the EU? For some services, the status or age of the recipient may also be relevant.
Set a place
Determine where the goods are located, where they are shipped from, where the warehouse operates, who is the importer and in which country the service is actually taxed.
Rate the mechanism
Check whether the seller settles the tax, the buyer settles it through reverse charge, whether it is possible to apply OSS, IOSS, cross-border SME exemption, intra-EU supply, export or another special procedure.
Just select the settlement
Only after determining the place of taxation and the appropriate mechanism should you choose the rate, invoicing method, documentation and any registration and reporting obligations.
Same country, different responsibilities
The same customer or the same country does not always mean the same settlement. The VAT effect is determined by the place of taxation, the location of the goods, the status of the buyer, the importer, and the specific mechanism applied.
| Model | First question | Possible VAT effect |
|---|---|---|
| B2B service | Is the purchaser a taxpayer and is the service subject to the general rule or one of the exceptions? | Under the general rule, VAT can be settled by the purchaser. Real estate, events, catering, passenger transport, and other exceptions require separate analysis. |
| B2C Sales | Is it a distance sale, an electronic service, a local service, an event or a warehouse sale? | There may be Danish VAT settled locally, via OSS or IOSS, or an exemption under the SME system. |
| Warehouse in Denmark | Is the goods in Denmark before they are sold and who owns the stock? | The movement of your own goods and subsequent local sale may trigger VAT obligations in Denmark. OSS does not usually cover local sales from Danish stock. |
| Imports from outside the EU | Who is the importer, what EORI number is used and what happens to the goods after customs clearance? | Import registration, import VAT, right of deduction and further local sale in Denmark may occur. |
| SME for an EU company | Is the company established in the EU, within the EU limit and the relevant Danish threshold, and has it obtained confirmation of exemption? | Once approved, you can sell certain goods or services in Denmark without charging VAT and without a standard local declaration, as long as you meet the conditions of the scheme. |
The SME system is available to companies established in the EU whose total annual EU turnover does not exceed the equivalent of EUR 100,000, or DKK 744,750 according to Danish documents. The exemption requires notification in the country of establishment and does not take effect until the possibility of using the EX number in Denmark has been confirmed. The rules are described by the Skattestyrelsen and the European Commission.
When might a foreign company need a Danish VAT number?
A local VAT number may be needed when a foreign company carries out a taxable transaction in Denmark for which it must settle the tax itself. However, before starting the process, it is necessary to check reverse charge, OSS, IOSS, and the possibility of using the cross-border SME system.
B2C Sales
Services and goods sold to Danish consumers may require Danish VAT to be charged unless the correct accounting is done through an OSS, IOSS or an approved SME exemption.
Services without reverse charge
If a service does not fall under the general B2B rule or there is no appropriate reverse charge basis, the foreign service provider may need a local VAT number.
Warehouse and local sales
Goods stored in Denmark, the movement of own stock, fulfillment and subsequent local sale require a separate analysis of VAT obligations.
Importer and reseller
Import to Denmark with subsequent sale requires checking the importer, EORI, import registration, right of deduction and local settlement of the sale.
B2B in Denmark does not always mean no Danish VAT
Reverse charge doesn't depend solely on whether the Danish customer has a valid VAT number. It's important to distinguish between the general place of supply rule for B2B services and the specific cases in which the Danish buyer is obligated to account for VAT.
Check buyer status
Verify that the buyer is acting as a taxpayer in a given transaction. A valid VAT number is important evidence, but it alone does not determine the place of taxation or the application of reverse charge.
Check the type of service
Services related to real estate, admission to events, catering, passenger transport and short-term rental of means of transport require a separate analysis of the place of taxation.
Separate services from goods
The principles governing B2B services should not be automatically transferred to the sale of goods. Goods located in Denmark may result in local delivery regardless of the status of the buyer.
The annotation does not create a reverse charge
The text "reverse charge" should only appear on an invoice after the correct basis has been established. The buyer's VAT number, an invoice entry, or a commercial agreement alone do not remedy an incorrectly determined place of taxation. Examples of situations requiring registration instead of a simple reverse charge are described in Business in Denmark.
Goods in Denmark change VAT analysis
When selling goods, the location of the goods before shipment or delivery to the customer is crucial. Goods already in Denmark, the movement of own inventory, and import and resale may trigger obligations other than those related to standard cross-border shipments.
The goods are shipped from the EU
When shipping goods from another EU country, you must check the buyer's status, the conditions of intra-EU delivery or B2C sales, the transport documentation and the possible use of OSS.
The goods are already in Denmark
The sale of goods from a Danish warehouse may constitute local delivery in Denmark. Simply using OSS in the country of establishment does not automatically resolve local inventory obligations.
Goods enter from outside the EU
When importing, it is necessary to determine the importer, the correct EORI number, customs document, import VAT, right of deduction and the method of further sale of the goods.
Basic obligations after obtaining a Danish VAT number
Once a Danish VAT number is activated, the company enters the local electronic reporting process. The scope of obligations depends on the assigned period and type of transaction, so details should be included in a separate declaration guide.
Momsangivelse
The basic obligation is to electronically report the VAT due, input tax and relevant transactions assigned to a given period.
TastSelv Erhverv
System access, identification data, user roles and official correspondence should be prepared before the first reporting.
Additional reports
Depending on the transaction, reports may appear on EU sales, purchases, imports or goods flows.
Documentation
The company should keep invoices, transport documents, import documents, report confirmations and justification for the settlement method used.
Please check the deadlines and declaration fields in a separate guide
Reporting frequency, nil returns, deadlines for 2026, payments, corrections, EU sales and fields A, B and C are described in the article dedicated to Danish VAT returns.
VAT refund from Denmark depends on the company status
Danish VAT refunds can be made through local settlement for registered taxpayers or through a separate refund procedure for companies without local registration. The appropriate procedure depends on the company's status and the type of transactions performed in Denmark.
Registered company
Excess input tax is accounted for through local reporting. Eligibility for a refund depends on the purchases' connection to taxable activity and proper documentation.
EU company without registration
A company from another EU country can benefit from the refund procedure if it has not carried out transactions in Denmark that require local registration and meets the conditions for refund.
Non-EU company
A non-EU entity is subject to a separate procedure and conditions regarding company status, commercial use of purchases and required documents.
The most common VAT errors in Denmark
The most expensive mistakes usually start with simplifying too quickly: "Denmark has 25%, so everything is clear.".
The company only looks at the DKK 50,000 threshold
The threshold does not replace the tax base analysis. An EU company should also check whether it meets the requirements for a cross-border SME and whether it has received confirmation of its eligibility for the exemption in Denmark.
Every B2B is treated as a reverse charge
A customer's VAT number is not sufficient. Exceptions for real estate, events, catering, transportation, and other services may change the place of taxation.
The magazine disappears from analysis
Goods in a Danish warehouse, the movement of own stock and local sales may give rise to obligations that are not replaced by a simple OSS settlement.
SME is applied before approval
The exemption cannot be applied solely on the basis of low turnover. The company must first register the system with its country of establishment and receive confirmation that the EX number can be used in Denmark.
VAT in Denmark 2026 requires a transaction map
The 25% rate is only the result of an analysis. First, you need to determine the place of taxation, the location of the goods, the status of the buyer and importer, and the availability of reverse charge, OSS, IOSS, or SME.
The standard rate is 25%
Denmark generally uses one standard rate, but not every transaction requires it to be charged by a foreign seller.
The mechanism depends on the transaction
Reverse charge, OSS, IOSS, SME, local sales, warehouse and import lead to different settlement methods.
The year 2026 brought changes to exemptions
Some commercial fitness, yoga, dance, music and similar activities for people aged 30 and over are subject to a 25% rate.
Not sure if Denmark requires VAT registration?
Describe the flow of goods, customer type, warehouse, import, and invoicing. We'll check whether the topic remains with reverse charge or OSS, or whether you need to enter into local VAT in Denmark.
VAT in Denmark 2026 – Questions and Answers
Briefly about the most common doubts regarding the general VAT rules in Denmark.
The standard VAT rate in Denmark is 25%. Danish VAT is referred to as moms. Before applying this rate, however, it is necessary to determine whether the place of taxation for a given transaction is in Denmark and who is liable for the tax.
Denmark generally does not apply an extensive system of reduced VAT rates. However, there are statutory exemptions and transactions where the seller does not charge Danish VAT, for example, when the conditions for reverse charge, intra-EU supply, or export are met.
As of January 1, 2026, 25% VAT has been applied to certain commercial activities, including fitness, yoga, dance, music, and singing, provided to individuals aged 30 and over. Activities for children and young people up to age 29 may continue to benefit from the exemption if conditions are met.
No. First, you need to determine the tax location, the location of the goods, the customer's status, and the nature of the transaction. For some B2B services, the buyer settles the tax, while for certain B2C sales, you can use the OSS, IOSS, or SME system.
Reverse charge can be applied to typical B2B services, among others, but a valid customer VAT number alone is not sufficient. Real estate, events, catering, passenger transport, and short-term vehicle rentals in particular require separate analysis.
No. OSS simplifies the accounting for certain B2C transactions taxed in other EU countries, but does not usually replace the obligations related to Danish warehousing, local sales from stock, or import and onward sale.
Yes. A company established in another EU country can benefit from the cross-border SME regime in Denmark if its total annual turnover in the EU does not exceed DKK 744,750, the company meets the relevant Danish threshold and has obtained approval through the administration of its country of establishment.
No. SME is a subjective exemption available after meeting conditions and obtaining an EX number. It is not a 0% rate or a standard VAT number. Using the exemption may also limit the right to deduct input VAT.
This text is for informational purposes only and does not replace an individual tax analysis. For VAT in Denmark, it's important to check taxpayer status, tax location, transaction model, reverse charge, VAT import, OSS, IOSS, SME, and current rules.
