How to Register for VAT in Denmark: Complete Step-by-Step Guide for Small Businesses

Quick answer: Businesses in Denmark must register for VAT (“Moms”) when their annual taxable turnover exceeds 50,000 DKK over a 12-month period.

If you are starting a business, freelancing, opening an ecommerce store, or expanding operations into Denmark, understanding Danish VAT registration rules is essential. Registering correctly helps your business remain compliant, issue legal invoices, reclaim VAT on expenses, and avoid penalties from the Danish tax authorities.

This guide explains everything small businesses need to know about VAT registration in Denmark, including thresholds, CVR numbers, registration steps, filing obligations, and common mistakes to avoid.

What Is VAT (Moms) in Denmark?

VAT in Denmark is called Moms. It is a consumption tax applied to most goods and services sold in Denmark.

The standard Danish VAT rate is:

25%

Businesses registered for VAT must:

• Charge VAT on taxable sales
• Collect VAT from customers
• Submit VAT returns to the Danish Tax Agency
• Pay collected VAT to the authorities
• Reclaim VAT paid on eligible business expenses

VAT registration is managed by the Danish Tax Agency (Skattestyrelsen).

Who Must Register for VAT in Denmark?

You generally must register for VAT if:

• Your annual turnover exceeds 50,000 DKK within a rolling 12-month period
• You sell taxable goods or services in Denmark
• You import goods into Denmark
• You provide intra-EU taxable services
• You operate an ecommerce business subject to Danish VAT rules

Even if your turnover is below the threshold, voluntary VAT registration is possible and often beneficial for startups and freelancers who want to reclaim VAT on business expenses.

CVR Number vs VAT Number in Denmark

Many entrepreneurs confuse the Danish business registration numbers. Here is the difference:

In many cases, your Danish VAT number is based on your CVR number.

Step-by-Step Guide to VAT Registration in Denmark

Step 1: Register Your Business

Before registering for VAT, your business must first obtain a CVR number.

You can register your business online via:

Virk.dk – Danish Business Authority

You will typically need:

• Business name
• Business activity description
• Business address
• Owner identification details
• Estimated annual turnover

Step 2: Gather Required Documentation

Prepare the following documents before starting VAT registration:

• Passport or valid ID
• Danish CPR number (if applicable)
• CVR number
• Business address and contact information
• Bank account details
• Description of business activities
• Expected revenue estimates

Step 3: Access TastSelv Erhverv

VAT registration is completed online through:

TastSelv Erhverv

You normally log in using:

• MitID
• NemID (legacy access in some cases)

Step 4: Complete the VAT Registration Form

Provide accurate information regarding:

• Business activities
• Estimated turnover
• Expected VAT obligations
• Import/export activities
• EU trading activities

Incorrect information may delay approval or trigger compliance reviews.

Step 5: Receive VAT Confirmation

Processing usually takes between 1 to 3 weeks.

Once approved:

• Your business becomes officially VAT registered
• You receive your VAT number
• You may begin issuing VAT invoices legally

Step 6: Start Charging VAT

After approval, you must:

• Charge 25% VAT on taxable sales
• Display VAT correctly on invoices
• Maintain proper bookkeeping records
• Track collected and deductible VAT

Step 7: File VAT Returns

VAT returns are submitted electronically through TastSelv Erhverv.

Depending on your business size, filings may be:

• Monthly
• Quarterly
• Semi-annually

Your VAT return includes:

• Total taxable sales
• VAT collected from customers
• VAT paid on expenses
• Net VAT payable or refundable

VAT Registration in Denmark for Foreign Companies

Foreign businesses may also need Danish VAT registration if they:

• Store inventory in Denmark
• Import goods into Denmark
• Sell goods locally
• Operate ecommerce activities targeting Danish consumers
• Provide taxable services within Denmark

Additional EU VAT rules may apply for cross-border transactions.

Common VAT Registration Mistakes

• Registering too late after exceeding the threshold
• Issuing invoices without valid VAT details
• Ignoring EU VAT obligations
• Using incorrect accounting methods
• Failing to keep proper records
• Missing VAT filing deadlines

Penalties and backdated VAT assessments may apply in cases of non-compliance.

Tips for Small Businesses

• Use accounting software compatible with Danish VAT reporting
• Monitor turnover regularly to avoid missing the registration threshold
• Keep digital records of invoices and receipts
• Understand EU VAT rules if trading internationally
• Consult a tax professional if your setup is complex

Frequently Asked Questions (FAQ)

Can freelancers register for VAT in Denmark?

Yes. Freelancers and self-employed individuals must register for VAT if their taxable turnover exceeds 50,000 DKK.

Can I voluntarily register for VAT?

Yes. Voluntary registration is permitted and may help businesses reclaim VAT on expenses.

How long does VAT registration take in Denmark?

Most applications are processed within 1 to 3 weeks.

What happens if I fail to register for VAT?

You may face penalties, backdated VAT liabilities, interest charges, and compliance investigations.

Can foreign companies obtain a Danish VAT number?

Yes. Foreign businesses conducting taxable activities in Denmark may need Danish VAT registration.

Conclusion

VAT registration in Denmark is an important step for businesses operating legally and efficiently. Understanding the Danish VAT system, obtaining a CVR number, and filing VAT returns correctly helps businesses avoid penalties and improve financial management.

For official information and registration, consult:

• Danish Tax Agency (Skattestyrelsen)
• Virk.dk
• TastSelv Erhverv

Need help registering for VAT in Denmark? Professional assistance can help ensure your registration and compliance are completed correctly from the start.