Here, you have an overview of what you should pay special attention to when you deregister your business for VAT and file your last VAT return.

Read more in Danish about closing your business and deregistering for VAT and A-tax.

You need to calculate your VAT and file your VAT return until the day you stop having business activities subject to VAT. This also applies if you have not had any activities and you have to file a zero VAT return (nulindberetning), meaning that you file a VAT return of DKK 0.

If you settle your VAT quarterly and you have deregistered your business for VAT on 10 April, for example, your last VAT settlement period will be 1 April - 10 April of the second quarter.

If you settle your VAT every six months, your last VAT settlement period will be 1 January - 10 April of the first six months if you deregistered your business on 10 April. 

If you have a personally owned business that is only registered for VAT (and not A-tax or excise duties, for example), you should be aware that your business CVR no. is automatically cancelled when you deregister for VAT.

If you settle your VAT quarterly, you should meet the ordinary deadlines when you file your last VAT return. This means that if, for example, you deregister your business for VAT on 10 April, you can file your VAT return from 1 July and until 1 September.

If you settle your VAT every six months and you deregister your business for VAT within the first three of the six months, 10 January for example, you can file your VAT return as soon as the first quarter is over, in this case from 1 April until 1 June. If, however, you deregister your business in the last three of the six months, 10 April for example, you cannot file your last VAT return until after 1 July and no later than 1 September.

Log on to e-tax for businesses and file your VAT return 

As usual, you cannot pay your VAT until 5 days before the payment deadline. If you want to make your payment before, you can set up your payment via online banking to be paid some time from five days before the payment deadline and until the deadline.

Remember to always file your VAT return. If you had no activities in the period up to the day you close your business, you have to file a zero VAT return (nulindberetning).

Please note that the deadlines for filing your VAT return and paying your VAT may be changed due to the coronavirus.

Read more about payment and deadlines.

File your VAT return to avoid a fee

Please note that if you do not file your VAT return for a period, we will make an estimate of your VAT for that period. And you should also check earlier periods for which you have not filed a VAT return. We will also estimate your VAT for such periods. This is what we call VAT based on an estimate (foreløbig fastsættelse). We will charge your business accordingly unless you file a VAT return with the correct amount.

If we have to make an estimate of your VAT we will charge a fee of DKK 800. Your business will be charged this fee, no matter if you subsequently file a VAT return and pay the correct amount of VAT.

When we have estimated your VAT, you will subsequently have to log on to E-tax for businesses and replace our estimate with the correct VAT amount. You do so under ‘Indberet moms’ (File your VAT return). This is also where you check to see if you have filed your VAT return for all periods.

If you are unsure of how to file your VAT return, you can read more about filing your VAT return in E-tax for businesses.  

What you have to include when you file your last VAT return varies greatly from business to business depending on the future of your business. Special rules apply if you are selling your business entirely or only partly. And if you close your business completely and sell goods and assets or remove them for private purposes, then other rules apply. This guide primarily focuses on what you have to do when you close your business. However, you can also read about what you have to pay special attention to if you are selling your business entirely or partially.

Log on to E-tax for businesses to file your VAT return 

If you sell all your business or an independent part of it, we also call this a transfer of business. You are not entitled to charge VAT when you transfer all or part of your business. However, if you do transfer all or part of your business, you should state the selling price of your inventory, machinery, services and facilities at www.virk.dk when you deregister your business for VAT. Please also state the name and CVR no. of the buyer.

In order to qualify as a full or partial transfer of business, the sale has to include tangible assets such as inventory and machinery and possible intangible assets such as production rights. Combined, this should form the basis of the operation making it a business. Moreover, the buyer must want to continue running the business subject to VAT. 

If the selling price of the assets (such as machinery and vans) exceeds DKK 100,000, the assets are considered capital goods. Please note that special VAT rules apply to capital goods. This means that certain situations may require that you refund VAT that you deducted when you bought the capital goods (a van for example). This is called a VAT adjustment obligation.

Read more about the rules of deduction for VAT on capital goods.

If you are selling all or a part of your business, it may be a good idea to have an accountant or other professional help you do that. Please call us on ( 45) 72 22 28 67 if you have any questions about selling your business or about capital goods.

Below, we will guide you through what you need to pay attention to when you file your last VAT return in relation to inventory, machinery and services, for example. 
These rules apply when you are entitled to the full deduction. Please note that if you were only entitled to a partial deduction when you bought your inventory, machinery and services for your business, other rules apply. You can call us on ( 45) 72 22 28 67 if you have any questions about the rules applying to partial deduction.

Inventory

If you sell all or part of your business inventory, you always have to charge, file and pay VAT on goods you sell. 
If, on the other hand, you remove inventory for private use, you have to repay the VAT on the goods on which you originally deducted VAT when you purchased them. You calculate the VAT based on the price of the goods when you purchased or produced them.  

Machinery, computers, telephones, etc.

If you sell capital goods of your business, such as machinery, computers or telephones, you should always charge, file and pay VAT on the goods you sell.
If, on the other hand, you remove goods, such as a computer, to yourself within five subsequent accounting years after you bought it, you should repay the part of the VAT that your business originally deducted when you bought the computer. If you remove the computer for private purposes within the same accounting year as you bought it for your business, you will have to repay the entire VAT amount. 

Example:

You bought a computer for your business in 2017 for DKK 10,000. (DKK 8,000 VAT of DKK 2,000) and you claimed a full VAT deduction of DKK 2,000. If you want to keep the full VAT deduction of DKK 2,000, the computer must have been used for business purposes for five subsequent accounting years at the time you close your business. This means from 2018 to 2022. If you remove the computer for private purposes in 2020 as you want to close your business, you have to repay the VAT amount. As the computer has only been used for business purposes in accounting years 2018-2020, you will have to calculate the deduction for the remaining two years. VAT is calculated based on the value of the computer, which is reduced by 20% each of the five years. As the computer has not been used for business purposes in two of the five years, you will have to repay 40% of the deduction of DKK 2,000. This means a total of DKK 800. You should declare this amount as output VAT when you file your last VAT return. You can also see the same example in the below table:

Example of sale of computer when a business is closed
Note Year of purchase 1st accounting year 2nd accounting year 3rd accounting year 4th accounting year 5th accounting year
The years the business has owned the computer as it was bought in 2017 2017 2018 2019 2020 2021 2022
Calculated value of the computer (exclusive of VAT) DKK 8,000 DKK 6,400 DKK 4,800 DKK 3,200 DKK 1,600 DKK 0
VAT to be repaid if the computer is removed for private purposes DKK 2,000 DKK 1,600 DKK 1,200 DKK 800 DKK 400 DKK 0

Read more about how you calculate the VAT on goods or assets (VAT on self-supply) that you remove for private purposes.

If you have bought a machine, a van or similar for more than DKK 100,000 (exclusive of VAT) and you sell it or remove it for private purposes, it is considered capital goods. Read more about capital goods below on this page.

Services

Services could include copyrights or patents. If you provide a service, you should always charge VAT, file a VAT return and pay your VAT.
If you remove services for less than DKK 100,000 for private purposes, you are required to repay the entire VAT amount if your business deducted the VAT when you bought the services. You calculate the VAT based on the price of the services at the time of purchase. 

Please call us on ( 45) 72 22 28 67 if you have any questions about VAT on services.

Real property

If you want to sell real property on behalf of your business or if you want to take over real property, you can call us on ( 45) 72 22 28 67 if you are unsure of the VAT rules in this case. 

Other capital goods

If you have bought a machine, a van, rights or similar goods or services for more than DKK 100,000 (exclusive of VAT) and you sell or remove it for private purposes, it is considered capital goods. Please note that special VAT rules apply to capital goods.

Read more about the rules for deduction of VAT on capital goods.

If you close your business completely and sell goods and assets or remove them for private purposes, certain VAT rules apply. Below, you can read about the rules that apply if you have a full deduction.

Partial right to deduction

If you have a partial right to deduction on acquisitions, other VAT rules apply. Please call us on ( 45) 72 22 28 67 if you have any questions about the rules for declaring VAT related to partial deduction.

If you are selling goods belonging to your business

When you close your business, you can sell the inventory, machinery, equipment and so on. However, you need to add VAT on the sale and include the amount as output VAT in your final VAT return.  

If you sell all of or an independent part of your business, however, you cannot charge VAT from the buyer, see the above section ‘Selling all or some of your business’.  

Removing goods from your business for private purposes

If you remove some of the goods of the business (inventory, machinery, equipment etc.) for private purposes when you close your business, you need to calculate the value and VAT on it. You must include the VAT you have calculated as output VAT in your final VAT return.

How to calculate VAT on inventory removed for private purposes

Valuation of goods bought by the business

The value of goods bought by the business is the remaining value of the original purchase price at the time of closing your business. This corresponds to the market value at the time of removing the goods. In other words, the price at which your business could buy the goods in a market between independent parties. If you remove purchased goods for private purposes, you must calculate VAT on the value.

For unused goods or goods that have been used, but that were bought not long before you remove them, the remaining value should be close to, or even the same as, the original purchase price.

Valuation of own products

The value of goods produced by your business is the purchase price of similar goods corresponding to the market price at the time you remove them. In other words, the price at which your business could buy the goods in a market between independent parties. If you remove such goods for private purposes, you must calculate VAT on the value.

You therefore need the price of a similar item with similar characteristics and in a similar condition etc.

In case it is not possible to find a similar item, you must use the cost price. The cost price is the total price of producing the item, including materials and labour costs. However, if you are the owner of the business, you do not include your own labour in the cost price.

Example of calculating VAT

Maria owned a yarn shop that also sold jumpers she knitted herself. The market price of her stock of yarn and knitting needles etc. is estimated at the remaining value of the goods, that is the price at which Maria could buy the goods in a market between independent parties at the time she chooses to close her business.

The market price of the jumpers she has knitted is estimated at the price of similar jumpers bought at the time when she chooses to close her yarn shop. As there are similar knitted jumpers on the market, Maria cannot estimate the value at cost price.

Maria closes her business 

 

 Inventory  

 

Yarn, knitting needles etc. 

 Own products/knitted jumpers 

Market price excluding VAT 

DKK 20,000 

DKK 40,000 

Output VAT 25% 

DKK 5,000 

DKK 10,000 

Costpris excluding VAT * 

  •  

DKK 30,000 *

Output VAT 25%

  •  

DKK 7,500 

* As there are similar knitted jumpers on the market, Maria cannot estimate the value at cost price.

Calculation of VAT

Maria calculates the inventories at DKK 5,000 and her own production of knitted jumpers at DKK 10,000. In total, DKK 15,000 which she includes in the output VAT in her final VAT return.

How to calculate VAT on machinery and inventory removed for private purposes

Valuation of machinery, computers, telephones, etc., with a purchase price of less than DKK 100,000

The value of operating equipment or assets of a value of less than DKK 100,000 per item is the remaining value of the original purchase price at the time of closing your business. This corresponds to the market value at the time of removing the goods. In other words, the price at which your business could buy the goods in a market between independent parties. If you remove operating equipment, such as machinery, computers and phones for private purposes, you must calculate VAT on the value.

The market price of operating equipment, such as machinery, office furniture, computers and phones, that you bought and started using shortly before you remove them for private purposes, should be close to, or even the same as, the original purchase price.  

Example of calculating VAT

Peter has decided to close his carpentry business. He removes the operating equipment of the business for private purposes. The following operating equipment is removed:  

  1. A 6-year-old PC. The PC was bought by the business for DKK 12,000. A PC of the same quality and in the same condition costs DKK 400.
  2. Scaffolding that is 4 years old. Scaffolding of the same quality and in the same condition costs DKK 25,000.
  3. A special saw that is 2 years old. A special saw of the same quality and in the same condition costs DKK 15,000.

The market price of the three pieces of operating equipment is estimated at the remaining value, that is the price at which Peter could buy the goods in a market between independent parties at the time he closes his carpentry business.

Peter closes his business

 

Operating equipment 

 

 Scaffolding 

Special saw 

PC with equipment 

Purchase price excluding VAT 

DKK 50,000

DKK 20,000 

DKK 12,000 

Market value excluding VAT 

DKK 25,000 

DKK 15,000 

DKK 400 

Output VAT 25% 

DKK 6,250 

DKK 3,750 

DKK 100 


                   
Calculation of VAT

Peter calculates DKK 10,100 in total. (DKK 6,250 DKK 3,750 DKK 100), which he includes as output VAT in his final VAT return.

Valuation of machinery and operating equipment etc., with a purchase price of more than DKK 100,000

If your business owns machinery, a van or similar with a purchase price of more than DKK 100,000 (excluding VAT) it is considered capital goods.  

If you remove operating equipment or assets worth more than DKK 100,000 per unit for private purposes, you need to calculate VAT based on the market value at the time of closing. This corresponds to the price at which your business could buy the item in a market between two independent parties.  

The market price of operating equipment, such as machinery, that you bought and started using shortly before you remove them for private purposes, should be close to, or even the same as, the original purchase price.

Please call us on ( 45) 72 22 28 67 if you have any questions about VAT on capital goods.

Other assets - sale and removal

Intangible property (services)

Sale of intangible property  

You must always add VAT if you sell intangible property. Examples of intangible property are copy rights, patents or an IT programme specifically developed for your business.

Removal of intangible property for private purposes

If you remove intangible property for private purposes, you must calculate VAT on the open market value. Examples of intangible property are copy rights, patents or an IT programme specifically developed for your business.  

The open market value is the amount which a customer at the same marketing stage and under conditions of fair competition would have to pay for the intangible asset at the time when you close your business. If it is impossible to find the price of a similar asset, the price must be fixed at the value of the expenses incurred by the business in connection with the service.

Please call us on ( 45) 72 22 28 67 if you have any questions about VAT on services.

Real property

Sale or removal of real property for private purposes

If you want to sell real property on behalf of your business or if you want to remove real property for private purposes, you can call us on ( 45) 72 22 28 67 if you are unsure of the VAT rules that apply. 
 

For personally owned businesses

If you have a personally owned business and you find that you no longer have access to E-tax for businesses, you have to log on using your personal MitID. As your business CVR no. was cancelled, you have to select ‘Fortsæt som privatperson’ (Continue as an individual) and not ‘Fortsæt som virksomhed’ (Continue as a business)  
If you still have problems logging on, please call us on ( 45) 72 22 38 04 00. 

For companies

If you own a company and you find that you can no longer access E-tax for businesses using your MitID, please call us on ( 45) 72 38 04 00. 

For partnerships (I/S)

If you have co-owned an I/S, you cannot log on to E-tax for businesses using your private MitID. In stead, you have to order an E-tax password. We will send the E-tax password to the registered business address so please make sure that this address is still correct.

If you want to change the address, you write to us and request a change of address before you order a E-tax password. You can write to us via E-tax for individuals -> 'Kontakt' (Contact) -> 'Skriv til os' (Write to us) -> 'Start af virksomhed' (Starting a business) -> 'Registrering af virksomhed' (Registering a business).

You have to keep your business accounts and vouchers for five years. This also applies if you have closed your business.

If you have bought real property or renovated premises in relation to your business, you should keep your accounting records for ten years after you have bought the property or made the renovation.