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VAT reporting


What is a VAT report?

A VAT report is a company’s report of VAT for a specific period. It consists of a calculation of a company’s total input VAT and output VAT, which is reported to the Skattestyrelsen (Danish Tax Agency).

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How to create a VAT report

To create a VAT report for your company, you must report a calculation of what the company as a whole must pay in VAT to the Danish Tax Agency.

First, you register your company’s input VAT and output VAT for the given period.

Input VAT is the company’s VAT on purchases and is the amount your company must pay in VAT when purchasing goods. The output VAT is the company’s VAT on sales and is the amount your company must charge in VAT when selling its goods.

After registering these amounts, you subtract the input VAT from the output VAT, which gives you the total taxable amount that must be reported.

Under the Skatteforvaltningens TastSelv Erhverv (Business Self-Service), you can choose the ” VAT ” page and enter the necessary information.

Who is obliged to report VAT?

You are generally liable for VAT if you operate a business that sells goods or services. This means that you are required to impose VAT on goods and services, and then there is a requirement to report your VAT to the Danish Tax Agency.

Most companies are required to report VAT, but there are so-called VAT exemptions.

Here are some examples:

  • Healthcare companies such as doctors, psychologists, etc.
  • Financial companies such as banks or lending institutions
  • Companies that offer education and training

In addition, there is also a VAT exemption for an annual turnover of less than DKK 50,000. If your company does not sell for more than DKK 50,000 per year, you are exempt from VAT. Whether you want to register for VAT for your company or not is optional.

VAT deadlines for reporting

You must be aware of the VAT deadlines for reporting VAT. However, not all companies in Denmark are subject to the same rules for reporting.

The common denominator, however, is that all companies must report VAT several times a year, which can vary from two to twelve times a year.

The deadlines depend on your company’s turnover:

  • Annual turnover of 0-5 million DKK: Reporting once every six months, where you have three months to report and pay VAT when the settlement period ends.
  • Annual turnover of 5-50 million DKK: Reporting quarterly, where you have one and a half months to report and pay VAT when the settlement period ends.
  • Annual turnover of 50 million DKK or more: Reporting every month, with one month to report and pay VAT. This ensures you have a manageable balance with the Danish Tax Agency.

If you are a newly started business, you must report quarterly for the first one and a half years, after which you can apply to report every six months.

You must meet your VAT deadlines

It is important that you meet the deadline for when you need to report the VAT that your company owes. Typically, it is the company’s bookkeeper who handles this task.

The company’s bookkeeping should be familiar with the rules, but if you need to, you should investigate on in good time.

If your company does not meet the VAT reporting deadlines, you may be charged a fee of 800 kroner because it results in the Tax Agency having to calculate the VAT themselves.

Do you want to know more?

At Acubiz, we can help make expense management more effortless than ever before. Digitize your expense management and save time on administration in your business.

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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