Denmark VAT on International Trade Guide (EU/Non-EU Rules)

EU Sales of Goods

Sales of goods to customers in other EU member states are treated differently depending on whether the customer is a business (B2B) or a consumer (B2C). Getting this distinction right is critical because the VAT treatment, reporting obligations, and liability differ fundamentally.

B2B sales to EU business customers are generally VAT-free (0% Danish VAT) provided the customer has a valid VAT number registered in another EU member state. This is known as a VAT-exempt supply with the reverse charge mechanism applying in the customer's country. Conditions for VAT-free treatment include: the customer must provide their valid EU VAT number (you should verify it via the VIES system on the European Commission's website), the goods must be transported to another EU member state (you need proof of transport such as a transport document, CMR note, or bill of lading), you must issue an invoice showing the customer's VAT number and noting "reverse charge" (or "omvendt betalingspligt" in Danish), and you must report the sale on your EC sales list (EU-salgliste) if your total EU sales exceed approximately 1.6M DKK in the current or previous year. If the customer cannot provide a valid VAT number, you must charge Danish VAT at 25% and the customer may later reclaim it from their local tax authority. For services, the place of supply rules differ — B2B services are generally taxed in the customer's country, while B2C services are taxed in Denmark unless specific exceptions apply. For more on service-related VAT, see our VAT Registration Guide →.

B2C sales to EU consumers — distance selling — underwent a major reform on 1 July 2021. Before the reform, each EU member state had individual distance selling thresholds (for Denmark, it was 280,000 DKK). If your sales to consumers in another EU country exceeded that threshold, you had to register for VAT in that country. Since 1 July 2021, the distance selling threshold has been abolished and replaced by a single EU-wide threshold of 10,000 EUR (~74,500 DKK) for total cross-border B2C sales of goods and electronically supplied services. Below this threshold, you charge Danish VAT (25%) on all EU consumer sales. Above this threshold, you must either register for VAT in each customer's country or use the One Stop Shop (OSS) scheme to declare and pay VAT at the rates applicable in each customer's country. The OSS significantly simplifies compliance by allowing you to file a single quarterly return covering all EU consumer sales. The Danish VAT rate is 25%, while other EU countries have rates ranging from 17% (Luxembourg) to 27% (Hungary). You charge the VAT rate of the destination country, not Denmark's rate, when using OSS. For practical guidance on implementing OSS, see the OSS section below →.

EU Purchases (Acquisitions)

When you purchase goods from another EU member state, the reverse charge mechanism applies. Instead of the supplier charging you Danish VAT, you must self-account for the VAT in Denmark. This ensures that VAT is ultimately collected by the Danish tax authority at the correct rate and that the revenue stays in Denmark.

How reverse charge works for EU acquisitions: When a Danish VAT-registered business purchases goods from an EU supplier, the supplier issues an invoice without VAT (noting "reverse charge" or similar wording). You, as the Danish buyer, must calculate the Danish VAT on the purchase value at 25% and report both the output VAT (the VAT you would have paid) and the input VAT (the VAT you can deduct) simultaneously on your VAT return. For a fully taxable business, the net effect is zero — the VAT you owe equals the VAT you can deduct. This mechanism ensures that VAT is correctly accounted for in Denmark while avoiding cash flow issues. The purchase value must include transport and insurance costs if they are included in the supplier's invoice. You must retain the supplier's invoice showing their valid EU VAT number (verified via VIES) as documentation. Without a valid VAT number, the supply is treated as domestic and the supplier should charge their local VAT, which you may need to reclaim separately.

Invoice requirements for EU acquisitions: The supplier's invoice must include: supplier's name, address, and valid EU VAT number; your name, address, and Danish VAT number; invoice date and sequential invoice number; description and quantity of goods; the delivery date or period; the consideration (price) exclusive of VAT; a reference to the reverse charge mechanism (e.g., "reverse charge — article 44 of the VAT Directive" or "omvendt betalingspligt"); and transport details if applicable. You must also report EU acquisitions on your EC sales list (for goods arriving from other EU countries) and on your VAT return. The EC sales list for acquisitions must be filed monthly or quarterly depending on your total trade value. If you acquire goods from an EU supplier and do not have a VAT number, the supplier must charge their local VAT, and you cannot reclaim it through a Danish VAT return — you would need to apply for a VAT refund through the EU VAT refund portal (for non-registered businesses). For more on VAT registration requirements, see our VAT Registration Guide →.

Exports Outside the EU

Exporting goods from Denmark to countries outside the EU (including the UK, Norway, Switzerland, USA, China, and all other non-EU countries) is VAT-free (0% Danish VAT) provided you can prove the goods have physically left the EU. Export is one of the most straightforward VAT-free transactions, but the documentation requirements are strict and non-negotiable.

Documentation required for VAT-free export: To apply 0% VAT on an export invoice, you must obtain and retain proof of export within 30 days of the time of supply (typically the invoice date or delivery date). Acceptable documents include: customs export declaration (the electronic declaration submitted via the Danish Customs system — this is the most reliable proof), bill of lading for sea freight (issued by the shipping line), airway bill for air freight (issued by the airline or freight forwarder), CMR note for road transport (the international consignment note), and delivery confirmation from the customer outside the EU (though this alone is usually insufficient — combine it with transport documents). The Danish customs authority (SKAT) provides an electronic export confirmation (elektronisk eksportbekræftelse) that can be downloaded from the customs system. For goods sold on delivery terms such as Ex Works (EXW), FOB (Free on Board), or CIF (Cost, Insurance, Freight), you must ensure that the transport document clearly shows the goods leaving the EU. If you use a freight forwarder, obtain a copy of the export documentation from them — it is your responsibility as the exporter to hold the proof.

Invoicing for exports: The invoice must show 0% VAT and include a reference to the export (e.g., "Export — 0% VAT according to the Danish VAT Act section 34"). You should also include the Harmonized System (HS) code for customs classification (though this is primarily for customs purposes, not VAT). The 0% VAT rate applies regardless of the delivery terms — Ex Works, FOB, CIF, DDP, or any other Incoterm. However, the delivery term affects who is responsible for transport and therefore who obtains the proof of export. The safe period for obtaining export proof is 30 days from the time of supply. If you cannot obtain proof within 30 days, you must charge Danish VAT (25%) on the invoice and later adjust if proof is obtained within a reasonable period. If proof is never obtained, the VAT stands and you may face penalties. For complex export transactions involving multiple parties, assembly, or installation, seek professional advice from a Danish VAT specialist. For export of services, the place of supply rules differ — B2B services to non-EU customers are generally outside the scope of Danish VAT.

Imports into Denmark

When you import goods into Denmark from outside the EU (including the UK, Norway, Switzerland, USA, and other non-EU countries), import VAT is payable at the point of customs clearance. The rules changed significantly in 2022 with the introduction of postponed accounting, which can eliminate the cash flow burden of import VAT for many businesses.

Import VAT calculation: Import VAT is calculated on the customs value of the goods. The customs value includes: the price paid for the goods, shipping costs to the EU border, insurance costs, and any commissions or brokerage fees. The total customs value is then subject to customs duties (which vary by HS code and country of origin — these are separate from VAT and not deductible), and then VAT at 25% is applied to the duty-inclusive value. For example: goods valued at 100,000 DKK + shipping 5,000 DKK + insurance 1,000 DKK = customs value 106,000 DKK. Customs duty at 5% = 5,300 DKK. Import VAT = 25% of (106,000 + 5,300) = 27,825 DKK. The customs duty is a cost (not deductible as VAT input). The import VAT is deductible as input VAT (subject to normal rules). The goods must be classified under the correct HS code (Harmonized System code) — this determines both the duty rate and any applicable restrictions or licensing requirements. Incorrect classification can lead to underpayment of duty and penalties.

Postponed accounting since 2022: Since 1 January 2022, Danish VAT-registered businesses can use postponed accounting for import VAT. Under this system, you do not pay the import VAT at customs clearance. Instead, you account for it on your VAT return — you report the import VAT as both output VAT (due) and input VAT (deductible) in the same return. This eliminates the cash flow disadvantage of paying VAT upfront and then reclaiming it later. To use postponed accounting, you must: be registered for VAT in Denmark, include your VAT number on the customs declaration, and report the import VAT on your VAT return for the period in which the import occurs. The customs declaration (import declaration) will show "postponed accounting" or "UD" (udskudt betaling). The import VAT amount is pre-filled on your VAT return based on customs data. For businesses that do not use postponed accounting, import VAT must be paid to the Danish Customs and Tax Administration before the goods are released. After release, you can deduct the import VAT as input VAT on your VAT return, provided you hold the customs import document (Toldkvittering). For more on starting your business and VAT considerations, see our Starting a Business Guide →.

One Stop Shop (OSS)

The One Stop Shop (OSS) is an EU-wide electronic system introduced on 1 July 2021 that simplifies VAT obligations for businesses selling goods to consumers in other EU member states. Instead of registering for VAT in every EU country where you have customers, you can file a single quarterly return through the OSS portal in your home member state (Denmark) covering all EU consumer sales.

Union scheme for EU sellers: If you are established in Denmark (or have a fixed establishment in the EU), you can use the Union OSS scheme to declare and pay VAT on: distance sales of goods to consumers in other EU countries (above the 10,000 EUR threshold), electronically supplied services (e.g., apps, e-books, streaming, online courses) to consumers in other EU countries, and certain other B2C services where the customer is established. The VAT rate applied is the rate of the customer's country, not Denmark's 25%. For example, if you sell to a consumer in Germany, you charge 19% German VAT; if you sell to a consumer in Hungary, you charge 27% Hungarian VAT. Filing is quarterly through the OSS portal on skat.dk, with payments due by the end of the month following the quarter. The return must list sales to each EU country separately with the applicable VAT rate and total VAT amount.

Non-Union scheme for non-EU sellers: Sellers established outside the EU can use the Non-Union OSS scheme for B2C supplies of electronically supplied services to EU consumers. This avoids the need to register for VAT in each EU country. The scheme is available to non-EU businesses that are not already registered for VAT in any EU member state. If you are a non-EU seller, you must appoint an intermediary (a fiscal representative) in the EU to handle the OSS registration and reporting on your behalf. The intermediary is jointly liable for the VAT obligations under the scheme.

Import OSS (IOSS) for goods under 150 EUR: The Import One Stop Shop (IOSS) applies to distance sales of imported goods from outside the EU to EU consumers, where the value of the goods does not exceed 150 EUR (~1,118 DKK). The IOSS allows the seller to charge VAT at the point of sale (using the VAT rate of the customer's country) and declare it via a single monthly return. Without IOSS, the consumer would pay VAT at import clearance, plus a customs handling fee (typically 150–300 DKK charged by the carrier). For Danish consumers, using IOSS means the 25% Danish VAT is included in the purchase price, and the goods pass through customs without additional VAT or handling fees. The IOSS number should be displayed on the customs declaration for the goods to be released without VAT collection. For businesses selling low-value goods to EU consumers, IOSS registration is highly recommended to improve the customer experience.

Documentation and Records

SKAT requires comprehensive documentation for all international trade transactions. The documentation must be retained for 5 years from the end of the financial year to which the documentation relates. Failure to maintain proper documentation can result in VAT being reassessed with penalties and interest.

Invoice requirements for international transactions: For VAT-free supplies (EU B2B and non-EU exports), the invoice must include: your name, address, and Danish VAT number; the customer's name, address, and VAT number (for EU B2B customers); a sequential invoice number; the date of issue; the date of supply (if different); a description of the goods or services; the quantity; the consideration per unit and total; the reason for the VAT-free treatment (e.g., "Article 138 of the VAT Directive — exempt supply to EU VAT-registered customer" or "Export outside the EU — 0% VAT"); the customer's valid EU VAT number for B2B transactions; and transport documentation reference where applicable. Invoices must be issued in Danish kroner (DKK) unless otherwise agreed. You may issue invoices in other currencies, but the VAT must be calculated and reported in DKK using the exchange rate applicable at the time of supply (SKAT publishes monthly exchange rates).

Proof of export within 30 days: For exports outside the EU, you must obtain proof of export within 30 days of the time of supply. If you cannot obtain proof within this period, you must charge Danish VAT (25%) on the invoice. Once proof is obtained later, you can adjust the VAT by issuing a credit note. Acceptable proof includes: the customs export declaration with customs stamp or electronic confirmation, a bill of lading or airway bill showing the goods have left the EU, a CMR note signed by the consignee confirming receipt outside the EU, or a certificate of shipment from the freight forwarder. For EU supplies, you need proof of transport to another member state — transport documents are the primary evidence.

EC sales lists and Intrastat: If your EU B2B sales exceed approximately 1.6M DKK in the current or previous year, you must file EC sales lists (EU-salgliste) monthly. These lists detail each EU customer's VAT number and the total value of sales to them for the period. Intrastat declarations are required if your EU trade exceeds certain thresholds: for dispatches (sales) approximately 7.5M DKK and for arrivals (purchases) approximately 7.5M DKK (thresholds are updated annually). Intrastat requires more detailed information including HS codes, delivery terms, transport modes, and statistical values. Fines for late or incorrect Intrastat filings can be significant — up to 50,000 DKK or more for serious violations.

FAQs

Do I need to charge Danish VAT on sales to EU business customers?

No — if the customer provides a valid EU VAT number registered in another member state, the supply is VAT-free (0% Danish VAT) with reverse charge applying in the customer's country. You must verify the VAT number via VIES and issue an invoice showing the customer's VAT number with a reverse charge reference. If the customer cannot provide a valid VAT number, you must charge Danish VAT at 25%.

What is the difference between OSS and IOSS?

OSS (One Stop Shop) covers distance sales of goods and B2C services within the EU — you declare VAT at the customer's country rate via a single quarterly return. IOSS (Import One Stop Shop) covers imports of goods valued under 150 EUR from outside the EU to EU consumers, allowing you to charge VAT at the point of sale. Both simplify compliance by avoiding multiple VAT registrations across EU countries.

Can I reclaim import VAT without paying it upfront?

Yes — since 1 January 2022, Danish VAT-registered businesses can use postponed accounting for import VAT. You account for the import VAT on your VAT return (both output and input) instead of paying it at customs clearance. This eliminates the cash flow burden. To use it, include your VAT number on the customs declaration and report the pre-filled import VAT amount on your VAT return.

What documentation do I need for a VAT-free export outside the EU?

You need proof of export obtained within 30 days of the time of supply. Acceptable documents include a customs export declaration (electronic confirmation), bill of lading, airway bill, or CMR note showing the goods have left the EU. Without proof within 30 days, you must charge Danish VAT and adjust later when proof is obtained. Records must be retained for 5 years.

What are the Intrastat and EC sales list reporting thresholds?

EC sales lists must be filed monthly if your EU B2B sales exceed ~1.6M DKK in the current or previous year. Intrastat declarations are required for dispatches over ~7.5M DKK and arrivals over ~7.5M DKK (thresholds updated annually). These require detailed reporting including HS codes, delivery terms, and transport modes. Late or incorrect filings can result in significant fines.