Businesses domiciled in countries outside the EU can obtain refund of VAT on goods and services purchased in Denmark. Danish VAT is 25%. Within the retail trade, VAT is included in the total purchase price and therefore it amounts to 20% hereof.

Foreign businesses need to apply for a refund of VAT. The amount is not refunded automatically.

A business may, on certain conditions, get a VAT refund for VAT paid in Denmark if the business is domiciled in a country outside the EU. This applies to goods and services that the business bought for business purposes.
A business can get a VAT refund if the following conditions are met:

  • The business is not domiciled, does not have a permanent establishment or similar in Denmark
  • The goods or services were bought for business purposes
  • The business would be subject to tax/VAT under the Danish VAT Act if it was domiciled in Denmark
  • In the application period, the applicant did not engage in business activities subject to tax/VAT, except for:
    • delivery of services (including transport services and related services) if such services are directly linked to export of goods to countries outside the EU
    • delivery of services (including transport services and related services) if such services are directly linked to export of goods that are subject to schemes allowing for full VAT exemption on import. This also applies to services in relation to goods that are in a customs warehouse or a tax warehouse.

When applying for a VAT refund, you need to complete and submit application form no. 31.004 (Refund of VAT to businesses outside the EU). You should use the continuation sheet if you apply for a VAT refund for more than eight invoices.

The deadline for applying for a VAT refund is on 30 September in the year after you bought the goods or services.

You can choose to complete the form in Danish, German, English or Swedish and you can write your information in capital letters or you may complete the form electronically. You then submit the form to the Danish Tax Agency:

Skattestyrelsen
Nykøbingvej 76
Bygning 45
4990 Sakskøbing
Denmark

You will receive a decision on your application within eight months of receipt of your application.

You can choose to have the amount refunded in Denmark or in the country in which the business is domiciled. If you choose to have the amount refunded in your country of domicile, your business must bear any costs in connection with the payment of the refund.

Making a VAT refund application
Include this in your application How and why
The duration of the application period Your application must cover the purchased goods and services subject to VAT concerning a period of at least three months and no more than an entire calendar year. The period may, however, be shorter than three months when it concerns the rest of a calendar year in which an application for VAT refund has already been filed. Such an application may also cover purchases which have not been included in previous applications for the calendar year in question. It is, however, not possible to apply for refunds for past years.
Minimum amounts

It is only possible to obtain a VAT refund if the application concerns a VAT amount of at least DKK 3,000. If you apply for an entire calendar year which is the most common thing to do, the VAT amount must be at least DKK 400 per country. Businesses that work up a VAT refundable amount of at least DKK 3,000 for a three-month period, may apply for a refund four times a year.

If the application concerns a calendar year or the rest of a calendar year, the amount must total at least DKK 400. The amounts in the application must be stated in Danish kroner.
Documentation

You must enclose the invoices (originals or copies) together with the application. If you have paid import VAT, the receipt for the payment (original or copy) hereof must also be submitted.

The invoices must contain the following information:

  • date of issue
  • invoice number
  • supplier's name and address and CVR/SE no. (central business reg. no./VAT no.)
  • name and address of the purchaser
  • description of the nature of the goods or services
  • amount and price of the goods
  • VAT amount

Sales tickets or bills not exceeding DKK 3,000 issued by retail merchants or other businesses from which sales take place primarily to private consumers may, however, be used as documentation even though the invoices do not include name and address of your business.

Where the application concerns the refund of VAT on petrol, diesel oil, etc. purchased at petrol stations, the bill/receipt may - instead of the name and address of your business - state the vehicle's registration number.

Where the documentation consists of a bank statement from petrol and oil companies concerning sale on credit of petrol, diesel oil, etc., you must also submit the receipts issued in connection with the individual purchases.

Certificate

If you have not previously applied for a VAT refund in Denmark, you must submit documentation to the effect that you run a commercial business in your country of domicile.

Therefore you must submit a certificate which proves that you run a commercial business in the country in question. The certificate must be issued by the competent authority in the country of domicile.

The certificate is valid for up to one year. If the certificate was issued more than one year ago, you need to submit a new certificate.

How to fill in the application

You must complete all the items with sufficient and correct information.
Insufficient information may cause the Danish Tax Agency to reject the application.

Information on invoices

On page two of the application form you must state the following:

  • the numbers of the individual invoices on the specification, consecutively numbered. Number one is allocated to the first invoice, number two to the second invoice etc.
  • the nature of the goods or services - for example overnight stays at hotels
  • date of invoice or customs receipt
  • invoice or customs receipt number
  • the VAT amount you wish to have refunded.
  • for which purpose are the goods or services used, or expected to be used, for example international transport of goods or participation in trade fair
  • name and address of the business having sold the goods or services to your business.

Incorrect information

You may be fined if you present incorrect or misleading information or withhold information relevant for the treatment of the application.

Where VAT is refunded to you unlawfully, the amount will be collected in accordance with the applicable Danish provisions. The amount will be collected in accordance with the agreements on mutual VAT collection assistance concluded with the country in which your business is domiciled. This also applies to any fines.

Fines and unlawfully refunded VAT may also be set off by the Danish Tax Agency against subsequent claims for refund of VAT.

Power of attorney

You may authorise a third party to handle the work in connection with applying for a refund of VAT. This does not change the general conditions. It is a precondition, however, that you submit a power of attorney, which shall subsequently apply until you withdraw it.

The same applies if the Tax Agency is to pay the amount of refund to someone other than the applicant. It must be stated clearly who is eligible to receive the amount.

A business can, on certain conditions, obtain refund of Danish VAT paid in Denmark, when the business is domiciled in a country outside the EU. The refund includes goods and services for the commercial use of the business.

The business can obtain VAT refunds if the following four conditions are met:

  1. The business is not domiciled or has a place of business or the like in Denmark
  2. The goods or services are bought for commercial use
  3. The business would be subject to a registration tax in accordance with the Danish VAT Act (Momsloven) if the business was situated in Denmark
  4. During the period which the application concerns, the applicant has not conducted business which is subject to registration tax except for:
  • delivery of services (including transport services and related services), if these services are directly related to the export of goods to locations outside the EU
  • delivery of services (including transport services and related services), if these services are directly related to the import of goods which are included by a scheme according to which complete VAT exemption is granted on imports. This also applies to services in connection with goods held in bond in a tax and customs warehouse.

VAT on goods and services can be refunded to the same extent as Danish businesses can deduct VAT payable on purchases of a similar nature. This means that you can obtain a full refund on most of your purchases for commercial use. 25% of the full VAT on restaurant visits is refundable and 100% of the VAT on overnight stays at hotels is refundable.

The refund is limited to a special deduction which must be stated on the invoice.

On a number of purchases, VAT is never refunded. This applies to purchases concerning:

  • food for the owner and employees of the business
  • acquisition and ongoing maintenance of accommodation for the owner and employees of the business
  • acquisition and maintenance of, for example, vacation premises, holiday cottages for the employees of the business
  • entertainment, representation and presents
  • acquisition, repair and operation of motor vehicles designed for transportation of no more than nine persons
  • payment in kind to the employees of the business

When you as a foreign business purchase goods/services in Denmark with Danish VAT, a VAT refund is not obtainable when the goods/services could be exempt of VAT in accordance with the Danish VAT Act.

Contact the Danish Tax Agency (Skattestyrelsen) for more information about this.

In connection with trips across the Oresund Bridge, foreign businesses may apply for a refund of VAT on the bridge toll from the Swedish tax authorities.

Businesses from Albania, Bosnia and Hercegovina, the Faroe Islands, Greenland, Iceland, Macedonia, Montenegro, Serbia and Turkey should contact:

Skatteverket
Utlandsenheten
205-31 Malmø
Sweden
E-mail: skattekontor1@malmo.se

Businesses from other countries are to contact:

Skatteverket
Utlandsenheten
106 61 Stockholm
Sweden
E-mail: stockholm@skatteverket.se

Refund of VAT on the bridge toll can therefore not be obtained from the Danish Tax Agency (Skattestyrelsen).

Please see our legal guide (in Danish) for further legal information.