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Denmark E-Commerce and Online Sales Tax Guide

Danish VAT, OSS, IOSS, marketplace liability, distance selling, and cross-border e-commerce tax rules — all amounts in DKK.

E-commerce businesses selling goods or services online into, from, or within Denmark face a layered set of VAT and tax obligations. The 25% Danish VAT (moms) applies to most B2C sales to Danish consumers, but the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes simplify EU-wide compliance. Marketplaces and platforms are deemed sellers (deemed supplier rules) for non-EU goods under EUR 150 and for all goods sold by non-EU sellers to EU consumers. SKAT (Skattestyrelsen) also enforces DAC7 reporting for digital platforms facilitating e-commerce transactions and the CESOP regime for payment data. This guide covers Danish VAT registration thresholds, the OSS/IOSS schemes, marketplace liability, digital services VAT (electronically supplied services), cross-border fulfilment, distance selling rules post-2021, records and invoicing, and the income tax treatment of e-commerce profits. For related topics, see our VAT Registration Guide →, International Trade Guide →, Digital Platform Business Guide →, and CESOP Guide →.

VAT Registration for E-Commerce

Domestic threshold: If your e-commerce turnover to Danish consumers exceeds 50,000 DKK in any 12 consecutive months, you must register for Danish VAT. This applies regardless of where your business is established — a non-EU seller shipping to Danish consumers must register in Denmark if no OSS scheme is used.

Distance selling abolished (2021): As of 1 July 2021, the old distance selling thresholds (35,000 EUR per EU country) were abolished. All cross-border B2C sales of goods to EU consumers are now taxed in the destination country (where the consumer is located). The OSS scheme allows you to declare and pay the VAT due across all EU member states in a single quarterly return, avoiding registration in each country.

Marketplace deemed supplier: If you operate an online marketplace (e.g., selling via Amazon, eBay, Etsy, Shopify Markets), the deemed supplier rule applies when: (a) you facilitate the sale of goods imported from outside the EU with a value ≤ EUR 150, or (b) you facilitate the sale of goods to EU consumers by a non-EU seller regardless of value. In these cases, the marketplace is deemed to have received and sold the goods itself and must charge and remit VAT. As a Danish marketplace operator, you are liable for the VAT. As a seller using a marketplace, the marketplace may be the one obligated to remit VAT — check their terms.

OSS and IOSS Schemes

Union OSS (One Stop Shop): Covers B2C supplies of goods within the EU (distance sales) and B2C services (telecommunications, broadcasting, electronically supplied services) provided to consumers in EU member states where you are not established. You register in one EU member state (in Denmark, via SKAT's TastSelv Erhverv) and file a single quarterly OSS return declaring all relevant sales by destination country. You pay the VAT at the rates applicable in each destination country. The OSS return is due by the end of the month following each quarter (30 April, 31 July, 31 October, 31 January).

Import OSS (IOSS): Covers B2C sales of goods imported from outside the EU with a value ≤ EUR 150. If you register for IOSS, you collect the VAT from the consumer at the point of sale and remit it via a single monthly IOSS return. The goods then benefit from a VAT exemption at import (no customs VAT collection), speeding up customs clearance. Since July 2021, all consignments ≤ EUR 150 imported into the EU are subject to VAT — the old exemption for small consignments was abolished. Without IOSS, the carrier/customs will collect VAT at the border, causing delays and administrative costs. IOSS is optional but strongly recommended for any business selling low-value goods to EU consumers from outside the EU.

Non-Union OSS: A separate scheme for businesses established outside the EU supplying electronically supplied services (digital services) to EU consumers. Registration is in any EU member state of choice. Denmark accepts non-EU OSS registrations.

Electronically Supplied Services (Digital Services)

Definition: Electronically supplied services (ESS) include: website hosting, software and software updates, online advertising, online marketplaces, streaming services (video, music, games), distance teaching (automated, no human intervention), cloud computing, online news and journals, and membership fees to online platforms. The key test: the service is delivered over the internet, is automated, and requires minimal human intervention.

B2C rules: ESS supplied to a non-VAT-registered consumer in Denmark is subject to Danish VAT at 25%, regardless of where the supplier is established. If you supply ESS to consumers in other EU countries, you charge the VAT rate of the consumer's country and report via OSS. The consumer's location is determined by two non-contradictory pieces of evidence (e.g., billing address, IP address, bank location, SIM card country code).

B2B rules: ESS supplied to a VAT-registered business in another EU country is subject to reverse charge in the customer's country (no Danish VAT). The customer accounts for VAT locally. You must obtain and verify the customer's VAT number via VIES.

VAT rate for digital publications: Denmark applies the standard 25% rate to digital publications (e-books, online newspapers, digital magazines) — unlike many EU countries that apply reduced rates to both print and digital. Print newspapers and magazines are VAT-exempt in Denmark, but their digital versions are taxable at 25%. This is a common trap for media businesses.

Cross-Border Fulfilment and Warehousing

Danish fulfilment centre: If you store goods in a Danish warehouse (fulfilment centre, FBA stock) before selling them to consumers, you generally must register for Danish VAT because the goods are physically present in Denmark. This applies even if you use Fulfilment by Amazon (FBA) Denmark or a third-party logistics provider like Bring, PostNord, or DSV.

Call-off stock rules (abolished 2020): The old EU call-off stock simplification was replaced by the 2020 VAT Quick Fixes. If you transfer your own goods to a Danish fulfilment centre from another EU country, you must register for Danish VAT in most cases — there is no simplification to avoid registration. However, under the EU VAT reform, a new call-off stock regime (Article 17a of the VAT Directive) allows simplified reporting for the transfer of own goods between EU countries for future sale to a known buyer, avoiding immediate registration. You must: (a) have a known recipient, (b) record the transfer in your records, (c) transfer the goods within 12 months, and (d) report the transfer in your EC sales list.

Import warehousing: Goods imported from outside the EU can be stored in a customs warehouse or free zone without paying import VAT until they are released for free circulation. Once released, you can use postponed accounting (report import VAT as both output and input VAT on the same return). For customs procedures, see our Customs and Import Duties Guide →.

Invoicing and Record-Keeping

E-invoicing requirements: Denmark mandates digital invoicing (e-fakturering) for B2G transactions (e-invoicing to public sector). For B2B and B2C, e-invoicing is not yet mandatory in Denmark (unlike Italy, France, Poland), but it is expected within the EU VAT in the Digital Age (ViDA) reforms by 2028. For now, standard invoice rules apply — you must issue an invoice within 15 days of the supply, or within the same calendar month for B2B cross-border supplies.

Invoice content for e-commerce: Your invoice must include: seller name/address/VAT number (or IOSS number for IOSS-covered sales), buyer name/address (for B2B, the buyer's VAT number), invoice date and sequential number, description and quantity of goods or services, net amount per item, VAT rate and amount per rate, total VAT and total gross amount, and a reference to the applicable simplification (e.g., "OSS — Article 369k of the VAT Directive" or "IOSS — Article 369l of the VAT Directive"). For B2C sales, simplified invoices are permitted (less detail required, but must include price inclusive of VAT).

Record retention: E-commerce records must be retained for 5 years from the end of the financial year. This includes: transaction logs, invoices, proof of delivery, customer location evidence (IP logs, billing addresses), OSS/IOSS records, and customs documentation. SKAT can request records in Danish — if your systems store records in English, you may need to provide Danish translations upon request.

Income Tax for E-Commerce Businesses

Business classification: E-commerce activity is generally treated as business income (virksomhedsindkomst), taxed at the corporate rate of 22% (limited company) or at progressive personal rates up to 52.06% (sole proprietorship via VSO or B-income). If your online selling is occasional or non-systematic, SKAT may classify it as capital gains (e.g., selling a few items on a marketplace from personal collection) — gains are then taxed at up to 42% depending on total gains. The distinction matters for deductions and loss offset. Systematic, profit-motivated, repeated selling with business-like organisation is a business.

Deductible expenses: E-commerce businesses can deduct: platform fees (Amazon, eBay, Shopify subscription), payment gateway fees (Stripe, Adyen, PayPal), shipping and fulfilment costs, advertising (Google Ads, Meta, TikTok), software and SaaS subscriptions, website hosting and domain costs, packaging materials, returns and refunds, professional fees (revisor, lawyer), and home office deductions if you operate from home. Inventory is recognised as an expense when sold (COGS).

Inventory and VAT correction: If you are VAT-registered, you deduct input VAT on purchases of inventory. When you sell the goods, you charge output VAT at 25%. If you hold inventory at year-end, you must correct your VAT position — the input VAT claimed on unsold inventory may need to be adjusted if the goods are destroyed, written off, or sold below cost (bad debt relief). You should take a physical inventory count at each year-end for both income tax (DKK value) and VAT purposes.

Cross-border profit taxation: If you are a Danish-resident e-commerce business, your worldwide profits are taxable in Denmark. If you have a permanent establishment in another country (e.g., a foreign warehouse, office, or significant agent), the profits attributable to that PE are taxable in that country (and exempt in Denmark with progression, or subject to foreign tax credit). For PE rules, see our Permanent Establishment Guide →. For e-commerce specifically, a foreign warehouse alone may not create a PE if it is a preparatory or auxiliary activity — but fulfilment centres with order processing, returns handling, and customer support likely create a PE.

DAC7 Reporting for Platform Operators

Scope: DAC7 (implemented in Danish law by 1 January 2023) requires digital platform operators to report sellers on their platform who provide: (a) rental of immovable property (holiday rentals, apartments), (b) personal services (task rabbits, freelancers, consultants), (c) sale of goods (e-commerce marketplace sellers), and (d) rental of transport (car rental, bike rental). Reporting is due annually by 31 January for the preceding calendar year.

E-commerce specific: If your marketplace facilitates the sale of goods by third-party sellers, you must report: seller name, address, VAT number (if any), tax identification number (TIN), total consideration paid or credited per quarter, number of transactions, and any fees, commissions, or taxes withheld. The report is filed electronically via SKAT's DAC7 portal. For full details, see our Digital Platform Business Guide →.

Penalties and Compliance

Late registration: Failing to register for Danish VAT when your turnover exceeds 50,000 DKK results in a penalty of up to 5,000 DKK plus the VAT due from the date registration was required. SKAT can go back 3 years for unreported VAT.

OSS/IOSS errors: Incorrect OSS returns (wrong country rates, missed deadlines) incur interest at approximately 3.5% annually. Intentional misreporting can result in penalties of up to 100% of the VAT due (grov uagtsomhed).

Marketplace liability: If the deemed supplier rules apply but the marketplace fails to collect VAT, the marketplace is jointly and severally liable for the unpaid VAT. SKAT has pursued Amazon, eBay, and other platforms for back-VAT in several EU member states — Danish enforcement is increasing.

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