Register your business for the VAT exemption scheme for small enterprises (SME) in the EU
You must update your application if:
- you have given us incorrect information when registering, as this may affect your VAT exemption;
- there are changes in the information you gave us in your application;
- you want to apply for exemption in a new EU member state or deregister from one of the member states where you are registered.
The scheme is optional and is for small and medium-sized enterprises (SME) with a total annual revenue in the EU of no more than DKK 744,750. It gives your business the same opportunities for VAT exemption that apply to small businesses in other EU member states where you sell your goods and services.
You can register, provide information about your revenue and apply for VAT exemption in other EU countries via the VAT Exemption SME (Momsfri Små) self-service system in E-tax for businesses.
The revenue threshold for VAT registration varies greatly from country to country.
See the EU Commission's overview of the individual EU countries' VAT thresholds (ec.europa.eu)
Your business must be established in Denmark
You can only register your business in the EU VAT exemption scheme for small and medium-sized enterprises (SME) if the business is established in Denmark, and you may only be registered in the scheme in one country.
If your business changes country of establishment, for example because you move, you must deregister from the scheme and register again in your new country.
You must have a CVR number and MitID/MitID for businesses to report in the self-service system VAT Exemption SME (Momsfri Små) in E-tax for businesses.
Your revenue must be below the EU threshold
The first condition for registration for the scheme is that the business’ revenue may not exceed DKK 744,750 (the EU threshold), neither in the calendar year in which you register, nor in the preceding calendar year.
This means that it will always take at least one calendar year before you can use the scheme again if you are deregistered because your revenue is too high.
You should have the following information ready before you register your business under VAT Exemption SME (Momsfri Små):
- Contact person, email and phone number of your business;
- Current or previous VAT One Stop Shop number, which is your CVR number;
- Revenue figures for each country in the current calendar year;
- Revenue figures for each country in the last calendar year;
- Revenue figures for each country in the previous calendar year, for those member states which require this.
The figures must be broken down by sector, for those member states which require this.
How to register your business for the EU VAT exemption scheme for small businesses:
Please note that you are not exempt from registering and paying VAT on sales in a EU country until you have been notified by us that the country has accepted your VAT exemption.
It can take up to 35 business days for a country to respond, and the processing time may vary from country to country – even if you have applied in several countries at the same time.
We will notify you directly via Digital Post when there is a response to your applications. You can also see the status of your applications in Momsfri Små (VAT Exemption SME) in E-tax for businesses.
When your VAT exemption in an EU country has been approved, this means that you can sell goods and services without adding VAT to your invoice. You also don't need to register for VAT and declare and pay VAT in the EU countries in question, as long as your annual revenue doesn't exceed that country’s VAT threshold.
Exemption number for your invoices
Once you have been approved for VAT exemption in Denmark, you will receive an exemption number that you can write on your invoices instead of a VAT number.
Please note that you can't claim a VAT deduction for your sales of VAT-exempt services.
You can allow others to use VAT Exemption SME (Momsfri Små) on your behalf.
You can create a document granting power of attorney, or you can use the PDF form below (02.052) to grant power of attorney.
If you create a power of attorney document yourself, remember to include the following information:
- You must write that the power of attorney is valid for the Momsfri Små scheme
- Who do you want to give power of attorney to? (State full name and CVR number)
- For how long should the power of attorney be valid? (from which date to which date)
- What actions do you want to give the power of attorney holder the right to take on your behalf, for example request access to documents, receive copies of letters from Momsfri Små or send us corrections to your information?
- Your own signature on the power of attorney
Fill in the power of attorney form (02.052)
How to submit your power of attorney
Powers of attorney can be submitted via the contact form in E-tax for businesses.
- Select ‘Kontakt’ (Contact)
- Select ‘Skriv til os’ (Write to us)
- Select ‘Indsend/indberet til os’ (Submit/Report to us)
- Select ‘Blanketter’ (Forms)
- Select ‘Andre blanketter/bilag’ (Other forms/documents)
- Attach your power of attorney
- Click on Send
Powers of attorney can also be sent by post to
Skattestyrelsen
Nykøbingvej 76, Building 45
4990 Sakskøbing
Denmark.
In E-tax for businesses you can give your accountant, advisor or employee access to report the revenue of your business via VAT Exemption SME (Momsfri Små) on behalf of the business. You can do that right after you have complete your application for the scheme.
Read more about how you give other access to your business profile in E-tax for businesses.
If you need to give somebody else a power of attorney to apply for VAT exemption in the EU on your behalf, you need to make sure that they have a valid power of attorney.
- You can send us a signed power of attorney. In your inquiry, you need to state that you contact us about VAT exemption for small businesses in the EU.
- The person you authorise can send us a power of attorney form that you have signed. It must be clear that your inquiry is about VAT exemption for small businesses in the EU.
- Your accountant or advisor can ask us to register the power of attorney if they are registered with the Accounting Scheme. Your accountant or advisor has to inform us that it a matter of VAT exemption for small businesses in the EU.
Fill in the power of attorney form (02.052)
How to submit your power of attorney
Powers of attorney can be submitted via the contact form in E-tax for businesses.
- Select ‘Kontakt’ (Contact)
- Select ‘Skriv til os’ (Write to us)
- Select ‘Indsend/indberet til os’ (Submit/Report to us)
- Select ‘Blanketter’ (Forms)
- Select ‘Andre blanketter/bilag’ (Other forms/documents)
- Attach your power of attorney
- Click on Send
Powers of attorney can also be sent by post to
Skattestyrelsen
Nykøbingvej 76, Building 45
4990 Sakskøbing
Denmark.
If you wish to apply for VAT exemption in more member states than you chose on your original application, you can update your application in VAT Exemption SME (Momsfri Små) in E-tax for businesses. Then the updated application will be pre-approved and forwarded to the requested member states, just like when you filled out the first application.
In this case, you must also wait for notification from us that you are VAT exempt in the new member states before your registration is valid. You will keep your existing exemption number, but it will not be valid in the new countries until you have been notified.
If you wish to leave the scheme in one or more EU countries, you must update your application in VAT Exemption SME (Momsfri Små) in E-tax for businesses. Then the updated application will be forwarded to the member states in question, just as when you filled out the first application.
In this case, your exemption number will continue to apply until the date on which we notify you that you have left the scheme. From that date, your exemption number will be inactive in the EU countries from which you have opted out.
You must remember that you must still report your revenue for the entire period that your exemption has been valid, and that you can't claim a VAT deduction for your VAT-exempt sales during the period.
You are obliged to update your application in Momsfri Små in E-tax for businesses on any change in your business’ contact person, telephone number, email address or web address.
Update your application in E-tax for businesses
If your business’s master data (name, address or industry) changes, you must update them at the Danish Business Authority (Erhvervsstyrelsen).
See and edit your business' master data at the Business Authority (Virk.dk)
You only need to update your revenue figures in the application when you apply for VAT exemption in new EU countries
Your application for pre-approval for the entire scheme, or your application for VAT exemption in the individual EUcountries, can be refused.
Below you can see possible reasons that your application may have been refused.
If your business revenue exceeds DKK 744,750 (the EU threshold) in the calendar year you register for the scheme or in the calendar year before, your application will not be accepted.
This means that you can't use the EU VAT exemption scheme for small businesses.
But you can be registered for VAT in the relevant countries where you want to sell goods and services.
You can also register for the VAT One Stop Shop Scheme if you are entitled to do so.
Each EU country has domestic VAT thresholds. Some countries have several thresholds (one for goods and one for services, for example) and other countries have no VAT exemption schemes.
The EU country in which you apply for the scheme decides the outcome of your application. We will notify you of the result via Digital Post.
The EU countries are not obliged to send you further information about their decision unless otherwise stated in domestic legislation. If a EU country sends such information, we will forward it to you via Digital Post.
VAT thresholds and rules vary from country to country.
See the EU Commission's overview of the individual EU countries' VAT thresholds
The scheme and the EU threshold concern your entire revenue from the sale of goods and services that would otherwise have been subject to VAT. More precisely, you must declare the booked revenue excluding VAT in all EU member states.
Therefore, you must remember to provide information about revenue from:
- sales in Denmark, regardless of whether you are registered for VAT or not;
- sales in EU member states where you have paid VAT via national VAT registration;
- sales in EU member states where you have paid VAT via the VAT One Stop Shop;
- sales in EU member states subject to the EU VAT-free sales scheme;
- sales in EU member states where you are exempt under the EU VAT exemption scheme for small businesses.
You do not have to include revenue from:
- 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, but not 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.
For further legal information in Danish see our legal guide .