Sale of goods and services in the EU

When your business sells goods and services to other EU countries, you have to pay attention to VAT issues.

You need to file your VAT return in 2 different places in E-tax for businesses
Certain requirements apply to invoices and documentation

If, as a Danish business, you sell goods and services to businesses in other EU countires, you generally don't charge VAT. But you have to report your sales as 'EU sales exclusive of VAT'. You have do that by no later than 25 each month in order to avoid having to pay Danish VAT.

The buyer is responsible for calculating and paying VAT in the EU country where his business is registered.

Report EU sales exclusive of VAT

When you sell goods to a buyer in another EU country, you should always be able to document that the goods are dispatched or transported to the other EU country. Such documentation is a requirement in order for you to sell the goods without charging Danish VAT. Additionally, the following applies:

You need to get and verify the VAT no. of the buyer in the relevant EU country.
You need to issue a detailed invoice stating the VAT registration no. of the buyer.
If you sell services, the invoice also have to state that reverse charge apply.

Please note that some services may be exempt from VAT due to Danish legislation.

If the services relate to the buyer's business subject to VAT, the buyer may request a VAT refund via the authorities in his own EU country. The authorities will forward the request to the Danish Tax Agency

Services relating to property located in Denmark, including hotel stays in Denmark.
Passenger transport taking place in Denmark (coach services).
Access to events relating to culture, art, sports, science, education, entertainment, etc. (such as fairs, exhibitions, seminars and courses) taking place in Denmark.
Restaurant and catering services carried out in Denmark.
Short-term hiring out of means of transport provided to a customer in Denmark.

As a general rule, you register for VAT in the EU country where you supply the service.

Services related to property located in another EU country (such as construction services).
Passenger transport carried out in another EU country.
Services within culture, art, sports, science, education, entertainment, etc. (such as exhibitions, ballet, theatre, concerts, sports events, fairs, seminars, conferences and courses) that take place in another EU country.
Restaurant and catering services carried out in another EU country.
Short-term hiring out of means of transport provided to a customer in another EU country.

For further legal information in Danish see our legal guide .

Sale of goods and services in the EU

Report EU sales exclusive of VAT

Documentation requirements for EU trade

Services that require you to charge Danish VAT

Services that require you register for VAT in the other country

Test cases to avoid double taxation