You must deregister your business at www.indberet.virk.dk when you close it down, sell it or transfer it to another party. You must enter the actual date of the discontinuation of the business, also if you do not deregister it until a later point in time.

Deregister your business at www.indberet.virk.dk

Correct your preliminary income assessment

1. Log on and change your business profits in your preliminary income assessment.

2. Register your business as having closed down: Until mid-September you can tick the field ‘Er du ophørt med virksomhed i år eller tidligere end i år?' (Did you close down your business this year or before this year?). After this time, you cannot tick this field until November when you receive your preliminary income assessment for the new year.

Prepare tax accounts and correct your tax return

You must prepare tax accounts for the year in which you close down your business, irrespective of what time of year the business was closed. 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 (statement of gains and losses). If you sell properties, you must also calculate the gain or loss at the time of the sale of the properties.

You must state the gain or loss in your tax return. The deadline is no later than 1 July in the year after your business closes down (Please note: the deadline has been extended to 1 September in 2020 due to the coronavirus). If you forget the deadline, you will be fined DKK 200 per day (however, up to a maximum of DKK 5,000).

Change your tax assessment notice/tax return and state your business profits and your financial information.

You must declare and pay VAT up to and including the date you stated as the date of discontinuation when deregistering your business at www.virk.dk. If you did not engage in any business activity and you did not keep any of the goods or plant and machinery in the period up until you closed your business, you must declare DKK 0. If you forget to declare VAT, we will make a temporary estimate for your for which we will charge you a fee of DKK 800.

Log on to E-tax for businesses (TastSelv Erhverv) and declare your VAT

In the following, you can see how to calculate your VAT depending on whether you are selling or keeping goods and plant and machinery from your business. When you close your business, special rules apply for VAT on stocks and plant and machinery, including computers, phones, machines etc. For that reason, apart from general buying and selling, you also need to consider VAT on inventory and plant and machinery.

Keeping goods, plant and machinery from the business for yourself

If you keep goods from the business, you must repay any VAT you have deducted on the goods in question.

If you keep plant and machinery with a value of less than DKK 100,000, such as a phone, computer and machines, you must pay back part of the VAT that you deducted on these items. This VAT is written off over a period of five years at 20% per year.

If you keep plant and machinery with a purchase value of more than DKK 100,000 excluding VAT, they are considered capital goods that also have to be repaid over a period of five years. You are in other words obliged to carry out an adjustment of deductions.

Selling goods and plant and machinery from the business

If you sell your inventory, machines, furniture and other plant and machinery etc., you have to charge VAT.

This also applies to capital goods, however, another business registered for VAT may take over the obligation for the adjustment of deductions, that is the remaining VAT, under special circumstances.

Sale of the entire business

If you sell the entire business to one buyer, the sale is exclusive of VAT. A partial sale is also possible if you sell a separate part of the business. If capital goods are included in such a sale, the adjustment of deductions for VAT must be carried out by the buyer. You must inform the Danish Tax Agency of the name, address and sales price of the assets you sold within 8 days of selling the business. 

Contact us if you are in doubt

You are welcome to contact us if you are in doubt or have questions about the specific rules.

Even though you deregister your business, you still have to keep accounts and other relevant documents on file for 5-10 years after the discontinuation of your business.

Examples of what you must keep on file:

  • delivery notes and time sheets
  • ledger cards
  • Z receipts/till rolls
  • records
  • order ledgers
  • production ledgers
  • inventory counting lists

Property

If you have purchased property or renovated the buildings you used in connection with your business registered for VAT, you must 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 NemID will be cancelled and as a result, you will no longer have access to your business digital mailbox.

Set up access to your digital mailbox

Remember to set up access to your business digital mailbox by means of your CPR no. (civil reg. no) and private NemID before you close down your business.

Further information on what you need to do before you close down your business. (Link only available in Danish).

Use your private NemID or E-tax password

If you need to file a VAT return or make any other declaration after you have closed down your business, you can use your private NemID if you have a sole proprietorship or a personally owned small business.

If you cannot use your private NemID, you should use an E-tax password (TastSelv-kode)

Order an E-tax password here

If you need help, please call us on (+45) 72 38 04 00.

You will receive the password by post, and the processing time may be up to six days. As a result, please contact us well in advance to make the filing deadline.

Please see our legal guide (in Danish) for further legal information.