Close this search box.

VAT Registration


What is VAT registration?

VAT registration is when a company or individual engaged in business activities registers with the authorities to collect and pay VAT on behalf of the state.

VAT is a tax, typically 25%, charged on goods and services sold in Denmark. If your company sells taxable goods and services, you must report input and output VAT to the Danish Tax Agency.

But before you report VAT, you must be VAT registered.

You can handle business expenses automatically with Acubiz

With Acubiz, you can streamline your company’s management of expenses and costs and save on manual labor.

When should you register for VAT?

In Denmark, VAT registration is mandatory for companies with an annual turnover of more than DKK 50,000.

It is also mandatory to register if you operate a VAT-liable business – this can be a hotel and restaurant business or a construction and civil engineering business. This applies regardless of the annual turnover.

Voluntary (and advantageous) registration

If you do not meet the turnover threshold or do not operate a VAT-liable business, you can still register for VAT.

Voluntary VAT registration can provide access to VAT deductions on purchase costs, and it can be advantageous for companies that deal with other VAT-liable businesses. If you add VAT to your selling prices, you can deduct the VAT from your company expenses. You can only do this if you are VAT registered.

VAT liable companies

As a general rule, self-employed individuals and companies must be VAT registered if they sell services or goods for payment. This can be retail stores such as supermarkets and bookstores. It can also be online businesses that sell goods and services via webshops or apps.

This also applies if you manufacture, purchase, lease, or otherwise supply goods to your customers. Services such as repairs, maintenance, and construction are also VAT liable, as are consultancy, entertainment, and advertising services.

VAT exempt services

There are special VAT-exempt services that are exempt from VAT. This applies, among other things, to doctors, banks, and insurance, which are exempt from VAT and instead must pay a payroll tax.

Below are more examples:

  • Health services: Medical treatment, dental care, physiotherapy, psychology, etc.
  • Education: Education and teaching, including teaching materials, books, etc.
  • Cultural services: Access to museums, theater performances, concerts, etc.

How to register for VAT

VAT registration is free and takes place at the Danish Business Authority. You can find the registration form on, which you submit digitally with MitID (formerly NemID).

Once registered, you must report VAT to the Danish Tax Agency, responsible for VAT in Denmark. You can read more about this here.

Do you want to know more?

If you want to know more about VAT rules and relevant terms, you can visit our Acupedia.

Otherwise, feel free to contact us to learn how Acubiz can help your company optimize processes within Expense Management or book a free online demo to learn more.


When do you need to register for VAT?
Your business must register for VAT if your turnover is expected to exceed 50,000 kroner, excluding VAT, within one year. It is your turnover, not your profit, that determines when you need to register for VAT.
VAT registration is the process where a business registers with the authorities to pay VAT and be able to deduct VAT on its purchases.

Related words