VAT is the tax most tradespeople in Denmark get into trouble with — not because the rules are hard, but because the deadlines slip. This guide covers when you must register, how Danish VAT (moms) is calculated, when it must be reported, and what happens if you're late.
Contents
- How does VAT work for tradespeople in Denmark?
- When do I have to register?
- Output and input VAT: the calculation
- Deadlines: half-yearly and quarterly settlement
- What happens if I report late?
- Special cases: reverse charge and cross-border work
- FAQ
How does VAT work for tradespeople in Denmark?
Danish VAT is 25% and applies to virtually all trades work — labour and materials alike. You charge it on your invoices (output VAT), deduct the VAT on your own business purchases (input VAT) and pay the difference to the Danish Tax Agency. The VAT is never your money — you collect it on behalf of the state.
When do I have to register?
Registration is mandatory once your taxable turnover exceeds DKK 50,000 within 12 months. A trades business crosses that line almost immediately, so the right move is to register when you start the business (via virk.dk). Registration also gives you the right to recover VAT on tools, materials and other business expenses.
Output and input VAT: the calculation
An example month:
- You invoice DKK 100,000 + VAT → output VAT: DKK 25,000
- You buy materials and tools for DKK 40,000 + VAT → input VAT: DKK 10,000
- You owe the Tax Agency: 25,000 − 10,000 = DKK 15,000
If input VAT exceeds output VAT — say, in a month with big equipment purchases — the difference is refunded. The condition for every deduction is the receipt: no documentation, no recovery.
Deadlines: half-yearly and quarterly settlement
- Half-yearly — new and smaller businesses (turnover under DKK 5m). The deadline is the 1st of the third month after the period ends — 1 September for the first half-year, 1 March for the second.
- Quarterly — mid-sized businesses (turnover DKK 5–50m). Deadline: the 1st of the third month after the quarter ends.
Important: you must report even when the VAT due is zero — a nil return is still a return. Put the deadlines in your calendar, or let your accountant handle the filing entirely.
What happens if I report late?
- A fee for the missing return
- An estimated assessment — the Tax Agency estimates your VAT, usually on the high side, and the estimate stands until you file correct figures
- Interest, and ultimately forced deregistration for repeat offences
Reporting and paying are separate acts: if cash is tight, still file on time — a correct return without payment is far cheaper than an estimated assessment.
Special cases: reverse charge and cross-border work
- Buying goods in other EU countries: reverse charge applies — you calculate Danish VAT on the purchase yourself and deduct it at the same time.
- Selling to private customers abroad and construction for your own account have special rules — get advice before taking the job.
Stop thinking about VAT deadlines
Revisor Svend keeps your books up to date and files your VAT on time — for sole proprietorships and ApS companies, at fixed, transparent prices.
See Revisor Svend pricing →FAQ
What is the VAT rate for tradespeople in Denmark?
25% — the standard Danish rate. It applies to both labour and materials; Denmark has no reduced rate for trades services.
When are Danish VAT returns due?
Half-yearly filers: 1 September and 1 March. Quarterly filers: the 1st of the third month after each quarter. Always confirm your specific deadlines in TastSelv Erhverv — and file even when the amount is zero.
Can I recover VAT on my van?
Generally yes for a commercial van on yellow plates used for business, covering purchase, running costs and leasing — but the rules depend on the vehicle type and how it is used, so have an accountant confirm your specific setup.
VAT is simple when the books are current: output minus input, filed on time. With Revisor Svend you don't even have to watch the deadlines.