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VAT Calculation


What is a VAT calculation?

A VAT calculation is a calculation of how much VAT you need to report to the Danish Tax Agency (Skattestyrelsen) concerning the applicable VAT deadlines. The calculation consists of input VAT and output VAT.

Input VAT covers the VAT you have to claim from the tax authority. Output VAT covers the VAT you have charged through your sales and must pay the Danish Tax Agency.

You can handle business expenses automatically with Acubiz

With Acubiz, you can automate your expense management in your company and keep track of all necessary receipts, so you can quickly make your VAT calculation and VAT accounts.

How to do it

The calculation must show input and output VAT, which must be calculated separately. Here, you must subtract them from each other and determine whether you have more input or output VAT.

If the calculation shows that your output VAT is greater than your input VAT, you must pay back the difference. If, on the other hand, the calculation shows that the input VAT is greater, you will receive a refund.

Who needs to make a VAT calculation?

All VAT-registered companies must report VAT to the Danish Tax Agency as a VAT calculation.

A company must be VAT-registered if its annual turnover exceeds 50,000 Danish kroner. Otherwise, it is optional whether you want to register for VAT.

Companies such as doctors and banks, which sell VAT-free goods or services, are exempt from VAT and pay a payroll tax instead. Therefore, they do not have to make a VAT calculation.

The higher the turnover, the shorter the deadline for VAT reporting

Your company’s turnover determines how often you must prepare a VAT calculation and report VAT: monthly, quarterly, or semi-annually. The higher the turnover, the shorter the deadline for reporting.

If your company has not had any purchases or sales during the period, you must make a so-called zero reporting. By reporting 0 kroner in VAT, you avoid paying the Danish Tax Agency a fee for missing reporting.

Errors in my VAT calculation - what happens then?

You or your bookkeeper must check the VAT calculation for errors and omissions. But if you miscalculate the VAT, you can correct it in a subsequent declaration to the Danish Tax Agency.

If you have to pay VAT, you must remember to do so when the subsequent declaration is complete. If, on the other hand, you have VAT to claim, the money is automatically transferred to your bank account.

You should contact the Danish Tax Agency as soon as possible if there are significant errors.

Do you want to know more?

Is your company VAT registered, and do you have much travel activity connected with your work? Then you can apply for VAT refunds and get the VAT back for travel expenses abroad.

At Acubiz, we can handle the complicated application process, so you don’t have to spend time on it. We help you get your money back and take care of everything.

Contact us if you want to know how we can help your business or book a free online demo to learn more.

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