VAT Registration in Denmark

by Admin Uncategorised

If you’re starting a business in Denmark, understanding the VAT (Value Added Tax) registration process is essential. VAT registration is mandatory for businesses with an annual turnover exceeding DKK 50,000. Here’s a step-by-step guide on when and how to register for VAT in Denmark:

  1. Timing: You must register for VAT within eight days of reaching the DKK 50,000 turnover threshold. If you anticipate reaching this threshold within a 12-month period, you should register preemptively.
  2. Application: VAT registration is done through the Danish Tax Agency (Skattestyrelsen). You can apply online via their website or by submitting a paper application.
  3. Required Information: When registering, you’ll need to provide various details, including your business’s name, address, type of business, anticipated turnover, and information about company representatives.
  4. Documentation: Along with your application, you may need to submit supporting documents such as identification, business registration documents, and financial statements.
  5. Processing Time: Once your application is submitted, the Danish Tax Agency will review it. The processing time varies but typically takes a few weeks.
  6. VAT Reporting: After registration, you’ll be issued a VAT number. You’re then required to charge VAT on your sales, file regular VAT returns, and remit the collected VAT to the tax authorities.

By understanding the VAT registration process in Denmark and ensuring compliance, businesses can operate smoothly within the country’s tax framework.