How to apply for VAT exemption in Denmark from other EU countries
The scheme is optional and open to businesses with total annual revenue in the EU of no more than DKK 744,750 (EU threshold). It gives your business the same opportunities for VAT exemption that apply to small businesses in Denmark.
You can register, provide information about your revenue and apply for VAT exemption in Denmark via the VAT authorities in the country where your business is based (your country of establishment).
To use the EU VAT exemption scheme for small and medium-sized enterprises (SME) in Denmark, it is a condition that your revenue doesn't exceed the Danish VAT thresholds in the calendar year in which you register, and that it didn't do so in the previous calendar year, either.
In Denmark, we have 2 different thresholds for when you must be registered for VAT and pay VAT.
As a general rule, you are subject to the general VAT threshold if you sell goods and services that are subject to VAT. This means that you must register for VAT as from the sale where your revenue exceeds DKK 50,000 in a calendar year.
What is a first-time sale?
Only these types of works of art are covered by the threshold:
Only a number of specific types of physical artistic objects are subject to the threshold. Handicrafts of the nature of commercial goods, such as applied art objects, and commercial handmade goods for decoration and adornment, are not included.
- Paintings, collages and similar, drawings and pastel drawings executed by the artist solely by hand;
- Original engravings, prints and lithographs;
- Sculptures made by the artist, including casts of sculptures in a number not exceeding eight copies;
- Tapestries and wall textiles made by hand on the basis of the artist’s original drawings, provided that there are no more than eight copies of each;
- Unique ceramic items made by the artist and signed by them;
- Enamel work on copper executed exclusively by hand in a quantity not exceeding eight copies, numbered and signed by the artist or by the artist’s studio, other than costume jewellery and goldsmiths' or silversmiths' work:
- Photographs taken by the artist, printed by the artist or under their supervision, signed and numbered in a number of up to 30 copies, in any format or material.
When you have been approved for VAT exemption in Denmark, this means that you can sell goods and services in Denmark without adding VAT to your invoice.
You also don't have to register, declare and pay VAT in Denmark, for as long as your annual revenue doesn't exceed the Danish VAT thresholds.
Exemption number for your invoices
Once you have been approved for VAT exemption in Denmark, you will receive an VAT exemption number from the EU country where your business is established, which you can include on your invoice instead of a VAT number.
Please note that you can't claim a VAT deduction for your sales of VAT-exempt services.
Some services and a few goods are already exempt from VAT in Denmark. If you only sell goods and services that are exempt from VAT, you don't need to apply for VAT exemption through the scheme.
Services within the following areas are exempt from VAT in Denmark:
- Healthcare services provided by a qualified practitioner, for example doctor, dentist, optician, psychologist, physiotherapist, chiropractor, podiatrist or registered alternative practitioner (RAB)
- Social welfare and assistance services, but not interpreting services, coaching, lifestyle counselling or stress treatment
- Care services, but not home care covered by the free choice scheme and ordinary household assistance
- School teaching and teaching at higher educational institutions, vocational training, including retraining, and other teaching activities that are of the nature of school-related or vocational training.
- Non-commercial sports and athletic activities, as well as sporting events without professional participants.
- Cultural activities, such as access to a museum, art exhibition, zoo, aquarium or botanical gardens, but not radio, TV, cinema, theatres, concerts, animal shows and amusement parks
- Artistic activity, such as remuneration to an author, composer, musician, lecturer, literary translator, but not the sale of works of art (which are subject to a threshold, however) or of the copyright to a work
- Sale and rental of real estate, excluding short-term rentals, hotels, camping, parking, advertising space and safeboxes
- Transport of persons, except tourist buses
- Financial activities, such as lending, security and guarantees, investment of funds, foreign exchange transactions, cash and securities, and investment funds
- Lotteries and gambling
- Funeral directors
- Investment gold
- Blind people’s sales of goods and services for a maximum of DKK 170,000 annually
If you are a charitable association that doesn't have sales of a commercial nature, you don't need to apply for VAT exemption under the scheme.
Even if you are exempt from VAT in Denmark, there may be other taxes that you must report and pay.
Payroll tax
If you sell VAT-free services, you will often be subject to payroll tax instead. The tax is based on the business’ payroll for its employees and/or the business’ taxable profits.
Read more about payroll tax in Danish
Excise duty
If you sell goods or services that are subject to excise duty, you must be aware of the rules for registration and payment.
For further legal information in Danish see our legal guide .