VAT settlement
Find out when you need to report and pay VAT and what happens if you miss the deadline.
What is VAT settlement?
VAT invoicing is the process by which a VAT-registered company reports and pays VAT to the Danish Tax Agency. Depending on the size of the company and industry, VAT must be paid either monthly, quarterly or semi-annually.
If your business is registered for VAT, VAT must be paid regularly. If you are unsure whether your business is registered for VAT, you can check here.
How VAT invoicing works
- Calculate your company's total sales VAT (VAT collected from customers).
- Calculate your company's total purchase VAT (VAT paid on purchases).
- Subtract purchase VAT from sales VAT to find the amount to be paid in or paid out.
- Report the figures to the Tax Agency via TastSelv Erhverv.
Deadlines for VAT invoicing
There are three different settlement periods for VAT:
- Monthly VAT (few industries and high turnover)
- Quarterly VAT
- Half-yearly VAT
Quarterly VAT
Quarterly VAT must be reported four times a year. The deadlines are typically the 1st of the third month after the end of the quarter.
Half-yearly VAT
Half-yearly VAT must be reported twice a year. The deadlines are typically the 1st of the third month after the end of the half-year.
Consequences of late VAT payments
If the VAT is not reported on time, the company will receive a tax of DKK 800. If the VAT is not paid on time, interest will automatically be calculated.
Relevant legislation
All official deadlines and rules for VAT settlement can be found on the Danish Tax Agency’s website. Here you can also find information about special conditions, for example if your company sells abroad or has special VAT exemptions.
Frequently asked questions about VAT invoicing
Many businesses are unsure of how to handle VAT returns, especially if there are changes in turnover or business type. It’s important to keep up to date with current regulations, as deadlines and requirements can change.
See how we help with VAT and tax and get an overview of what you need to be aware of to ensure everything is reported correctly and on time.
If you need more information, you are always welcome to contact us directly.
