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Denmark

Company Formation and Related Services

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Buying a European shelf company with VAT number

Whenever you need to start doing business immediately in a European country and you need a company with a VAT number, you don’t have to wait for the bureaucratic procedures.

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Partner Law Firms

We encourage you to contact our partner law firms in Bucharest: Rolegal and E&C, both part of our legal network.

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Tax Minimization Structures

BridgeWest is specialized in special corporate structures designed for tax minimization. No matter where you want to incorporate your company, you will need to consider how you can legally minimize costs.

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VAT in Denmark

October 23, 2011, 1:12 am
BridgeWest

1. What is the VAT in Denmark?

The standard VAT rate in Denmark is calculated at 25%. There are no reduced rates for VAT in Denmark. Still, there is a category of goods and services that are subject to a zero-rated VAT. This category includes newspapers, selling, hiring or repairing of aircrafts and ships. Exports are also exempt from VAT in Denmark. The list of exemptions from VAT in Denmark extends to health services, education, insurance, sports competitions, cultural activities, gambling, postal service, passenger transport, travel agencies, burial and charitable events.

2. How can I get a VAT refund in Denmark?

VAT can generally be refunded in Denmark, but there are some goods and services that are not VAT-refundable, such as holiday houses, entertainment or tourist buses. Restaurant bills provide a VAT refund below 25%, while only 50% of the VAT can be refunded in accommodation. However, in order to apply for a VAT refund in Denmark, an application may be submitted to the tax authorities’ office or electronically by an authorised person who has already registered for VAT in Denmark. Invoices must also be attached to the application form. Danish authorities may request additional documents when applying for a VAT refund. The refund is usually received within six months after application.

3. How can I register for VAT in Denmark?

The Danish Trade Registry which keeps evidence on new companies that need to register in Denmark sends information to the tax authorities about the recently registered business.  All companies that perform activities which are subject to VAT must register for VAT purposes in Denmark. A file must be completed and sent to the Danish tax authorities by the owner or a legal representative appointed by power of attorney.

4. How does intra-community VAT work in Denmark?

Exports of goods to companies that are not in the European Union space are free of VAT, but sales and acquisitions intra-community must be recorded as transport invoices or declarations. If a company registered for VAT in Denmark receives goods from a company in EU, the Danish company is subject to VAT of 25%. However, if the goods would usually be exempt from VAT, then the tax will no longer be charged from the company. 

BridgeWest offers Company Registration in Denmark as well as related services such as Danish shelf companies, VAT Registration and Virtual Office Services in Denmark. All the basic information regarding the requested steps for starting a business in this country was put together in a YouTube video: How to Open a Company in Denmark. We hope you will enjoy it and share it with your professional network.




Open Business in Denmark
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