Closing your business

Before you close your business, you should access your business tax account via E-tax for businesses (TastSelv Erhverv). The tax account gives you an overview of your business declarations, charges and payments to and from the Danish Tax Agency.

In your tax account, you can see if everything is settled before you close your business, including if you have made all the required declarations in order to avoid duties and paying too much VAT or A-tax, for example.

Log on to E-tax for businesses and check your business tax account 

Read more about your tax account

If you have already closed your sole proprietorship, you have to use your personal MitID to log on to E-tax for businesses. Once you have logged on, you select ‘Fortsæt som privatperson’ (Continue as a private individual) and not ‘Fortsæt som virksomhed’ (Continue as a business) as your sole proprietorship CVR no. has been cancelled.

Now, you are ready to deregister/close your business at virk.dk

Deregister your business at virk.dk

Once you have closed your business, you can get your deregistration certificate at E-tax for business. This certificate can be used as documentation to your bank or unemployment fund, for example, if necessary. 

This is what you do:

1. Log on to E-tax for businesses
2. Select ’Profil’ (Profile) at the bottom of the left-hand menu
3. Select ’Registreringsbevis’ (Registration certificate)
4. Click ’Hent registreringsbevis/ophørsbevis’ (Registration certificate/Deregistration certificate)

Even though you deregister your business, you still have to keep accounts and other relevant documents on file for a minimum of five years. This means you have to keep information such as your accounts, bookkeeping information and vouchers.

If you have purchased property or renovated the buildings you used in connection with your business, you have to keep the accounting records on file for 10 years after the date of purchase of the property or renovation of the buildings.

When you close your business, please note that your business MitID will be cancelled and as a result, you will no longer have access to your business digital mailbox. As a result, you should make sure that you can still log on to check if you have received important messages from us or other public authorities.

How to reestablish access to Digital Post of your closed business (virk.dk)

You have now closed your business, and if your business was registered for A-tax, excise duties or payroll tax, for example, you should make sure to declare all periods until the date you closed your business. Remember to submit your declaration for the relevant period, even if you will have to declare DKK 0.

Before you proceed to step five, there are a few things in relation to VAT, salary and tax, payroll tax and excise duties to pay special attention to before you make your last declaration:

VAT

Filing your last VAT return

Salary and tax

Declaring your last salary and tax (in Danish)

Payroll tax

Declaring your last payroll tax (in Danish)

Excise duties

This is how you deregister your business from excise duties (in Danish)

Once you have closed your business, you have to correct your business profit in your preliminary income assessment so that you will be paying the right amount of tax throughout the year.

Correcting your preliminary income assessment:

1. Log on to E-tax for individuals
2.  Select ‘Forskudsopgørelsen’ (Preliminary income assessment)
3. Correct your business profit in field 221 or 435
4. Check off the field ‘Virksomhedsophør’ (Close of business) so that your preliminary income assessment for the next year does not include business profit. You find the field under ‘Andre felter’ (Other fields), ‘Selvstændig erhvervsdrivende’ (Own business).

Please call us on the number on this page if you have problems logging on or if you have any questions.

You have to calculate your business profit and as a result you have to prepare your tax accounts form 1 January until the date you close your business. You must calculate gains or losses on the items you have removed from the business or sold to others, e.g. computers, inventories, furniture, vehicles and machinery to be included in your business profit.

Please note that you have to declare your business profit on your tax return in the year after your business closed. The tax return deadline is 1 July (however, 1 September in 2020 due to the coronavirus).

If you miss the deadline, you will be fined DKK 200 per day (however, maximum DKK 5,000).

Correcting your tax assessment notice/tax return:

1. Log on to E-tax for individuals
2. Select ‘Ret årsopgørelsen/oplysningsskemaet’ (Correct your tax assessment notice/tax return)
3. Certain amounts will be preprinted. Decide whether these amounts are correct or not and correct the relevant amounts.
4. Click ‘Næste’ (Next) and check box 71 that your business is closed.
5. Enter your profits in box 111 or your loss in box 112. Check if there are any other boxes you need to complete.
6. Scroll to ‘Regnskabsoplysninger’ (Accounting information) and click ‘Oplys’ (Declare). Enter the information in the relevant boxes.
7. Click ‘Gem’ (Save). You will then be asked if you need to declare information for other businesses. If not, you click ‘Tilbage’ (Back).
8. Decide whether you have anything else to declare. Remember, that your tax assessment notice covers both your business and your private financial situation.
9. Click ‘Næste’ (Next) and you will see an overview.
10. Click ‘Godkend’ (Accept). You can now see your tax assessment notice. (If something is incorrect, you will be asked to complete what is missing before a new tax assessment can be generated.)
11. Your tax assessment notice shows you if you have paid too much tax and is entitled to a refund or if you have to pay additional tax.

Please call us on the number on this page if you have problems logging on or if you have any questions.

Read more about how you pay tax on your own business