How to Calculate Denmark VAT (Moms)

Denmark's Value Added Tax (VAT), known locally as "Moms" (Merværdiafgift), is a consumption tax applied to goods and services. Denmark has a standard VAT rate of 25%, the highest in the EU, along with a 0% rate for specific supplies. VAT is administered by the Danish Tax Authority (SKAT - Skattestyrelsen). Denmark is an EU member state and its VAT system is harmonized with EU rules, though Denmark's system is unique in having no reduced rates between the standard and zero rates.

Adding VAT to a Price

When you need to add VAT (Moms) to a VAT-exclusive price, use these formulas:

Example for 25% standard rate: If the base price is DKK 100 (excluding VAT):

VAT Amount = DKK 100 × 0.25 = DKK 25.00

Total Price = DKK 100 + DKK 25.00 = DKK 125.00

Removing VAT from a Price

When you need to calculate the VAT-exclusive price from a VAT-inclusive price, use these formulas:

Example for 25% standard rate: If the total price is DKK 125 (including VAT):

Base Price = DKK 125 ÷ 1.25 = DKK 100.00

VAT Amount = DKK 125 - DKK 100 = DKK 25.00

Understanding Denmark's VAT System

What is Moms (VAT) in Denmark?

Moms (Merværdiafgift) is Denmark's value-added tax system. It's a consumption tax collected at each stage of the supply chain with the final burden on consumers. Denmark's VAT system is unique within the EU as it has no reduced VAT rates between the standard and zero rates. The Danish VAT system is harmonized with EU VAT rules as an EU member state. Businesses can claim input tax credits for VAT paid on business purchases.

The Two Danish VAT Rates

Standard Rate (25%): Applies to most goods and services including electronics, clothing, motor vehicles, alcohol, tobacco, professional services, food, water, pharmaceuticals, medical equipment, most entertainment, hotels, restaurants, repairs, and hairdressing. Denmark has the highest standard VAT rate in the EU.

Zero Rate (0%): Applies to specific supplies including:

• Books and e-books (reduced from 25% to 0% in August 2025)
• Newspapers and magazines (physical and digital)
• International and intra-community transport of passengers
• International transport of goods
• Medical and dental care services
• Financial services and insurance
• Education services
• Cultural and artistic services
• Services of writers and composers
• Admission to cultural activities (museums, theatre, concerts)
• Professional coaching services

Exempt Supplies

Some supplies are exempt from VAT in Denmark, meaning businesses cannot claim input tax credits:

• Public passenger transport (taxis, buses, trains)
• Scheduled air transport
• Public postal services
• Bookshop services
• Zoo and museum operations
• Some cultural venue services

VAT Registration Requirements

Businesses in Denmark must register for VAT if:

• Annual turnover exceeds DKK 50,000 - Registration threshold
• Non-EU companies - Must appoint a fiscal representative
• OSS sellers - EU sellers of digital services

Businesses below the threshold can voluntarily register for VAT.

VAT Filing and Compliance

VAT-registered businesses in Denmark must file VAT returns with SKAT (Danish Tax Authority):

• Monthly Returns: Most businesses file monthly
• Quarterly Returns: Available for eligible small businesses
• Bi-Annual Returns: For very small businesses
• Payment Deadline: By the 14th of the month after the return period
• Electronic Filing: All returns filed via TastSelv-Erhverv portal (mandatory)
• Penalties: Late submissions can incur fines of DKK 800 plus 0.7% monthly interest

Denmark's Unique VAT System

What Makes Denmark Different

Denmark's VAT system is unique in several ways. Unlike all other EU member states, Denmark does not have reduced VAT rates between the standard (25%) and zero (0%) rates. This means most products are either taxed at the standard 25% or are zero-rated. Additionally, Denmark has a longer list of VAT-exempt supplies compared to other EU countries, particularly for cultural and transport services.

Items Subject to 25% Standard Rate

The following are subject to standard 25% VAT:

• Electronics and appliances
• Clothing and footwear
• Motor vehicles and parts
• Alcohol and tobacco
• Food and beverages
• Water supplies
• Professional services
• Entertainment and amusement
• Hotel accommodation
• Restaurant and catering services
• Pharmaceutical products
• Medical equipment
• Repairs (shoes, clothing, household items)
• Hairdressing and beauty services
• TV and cable services

Items Subject to 0% Zero Rate

The following are subject to 0% VAT (no tax):

• Books (all formats since August 2025)
• E-books
• Newspapers and magazines
• International passenger transport
• Medical and dental services
• Financial services and insurance
• Education services
• Cultural and artistic services
• Bookshop and museum services

Denmark VAT Quick Reference

Frequently Asked Questions (FAQ)