Denmark maintains one of the most structured VAT systems in Europe, with a standard VAT rate of 25% on most goods and services. For non-Danish businesses domiciled outside the EU, claiming a Denmark VAT refund is possible under specific conditions. Companies that incur Danish VAT during trade shows, accommodation, or business travel can reclaim their eligible amounts through the Danish Tax Agency (Skattestyrelsen).
Understanding how the VAT refund process in Denmark works helps international businesses recover high costs while remaining compliant with local tax rules.
This guide provides everything you need to know about claiming a VAT refund online, including eligibility criteria, documentation, deadlines, and practical compliance tips, ensuring your business remains both efficient and audit-ready when operating across Danish borders.
Key Highlights
- Denmark’s Standard VAT Rate: The Danish VAT (moms) is 25%, applies to most goods and services, and offers refunds to eligible local and foreign businesses.
- Refund Eligibility: Non-EU companies can claim VAT refunds under the 13th Directive, provided their home country has a reciprocity agreement with Denmark.
- Claim Deadline: All refund applications must be filed by 30 September of the year following the expense period to remain valid.
- Eligible vs. Non-Eligible Expenses: Refundable expenses include accommodation, trade shows, marketing, and professional services, while entertainment, gifts, and fuel are excluded.
- Commenda’s Expertise: Commenda streamlines Denmark VAT refund claims through automated systems, compliance checks, and expert documentation support, ensuring a smooth recovery.
Understanding VAT in Denmark
Value Added Tax (VAT), referred to locally as “moms”, applies to nearly all goods and services in Denmark at a standard rate of 25%. Unlike a sales tax, which is used only at the final point of sale, VAT is a multi-stage tax, levied at every level of production and distribution, ultimately borne by the final consumer.
For Danish VAT-registered entities, VAT paid on business-related purchases is deductible as input tax against VAT collected on sales. Non-resident companies, on the other hand, can reclaim Danish VAT through either the EU refund directive (2008/9/EC) or the 13th Directive (for non-EU countries with reciprocity agreements).
Understanding how the Danish VAT operates compared to systems elsewhere is crucial for compliance. To see how VAT differs from U.S. sales tax structures, refer to our article on VAT vs Sales Tax.
Who Can Claim a VAT Refund?
A Denmark VAT refund is available to two main categories of businesses: Danish VAT-registered entities and non-resident (foreign) businesses.
1. Danish VAT-Registered Entities
Domestic businesses registered under a valid Danish VAT number can reclaim VAT on legitimate business expenses through their periodic VAT returns. Examples include office rentals, raw materials, or imports linked to business operations.
2. Non-Resident or Foreign Businesses
Companies domiciled outside Denmark but operating temporarily or purchasing goods/services within Denmark may also qualify for refunds.
To claim a Denmark VAT refund, a foreign business must:
- Not be domiciled or have a permanent establishment in Denmark.
- Be VAT-registered in its home country.
- Have incurred VAT exclusively for business-related activities.
- Have made no taxable supplies in Denmark, except in cases tied to export services.
Businesses from EU countries must apply via their local tax authority’s online portal, while non-EU companies must submit directly to Skattestyrelsen using official documentation.
This ensures compliance with Danish tax law while allowing legitimate businesses to reclaim input VAT efficiently.
When Can Danish Businesses Claim a VAT Refund?
The VAT tax refund in Denmark can be claimed on an annual or quarterly basis, depending on the total eligible amount.
- For EU Businesses: Applications are submitted electronically through the applicant’s home tax authority portal. The deadline is 30 September of the year following the refund period.
- For Non-EU Businesses: Refund claims are filed directly with Skattestyrelsen, with the same 30 September deadline.
The claim period must cover at least 3 months and cannot exceed 1 calendar year. If the period covers the end of the year or is a continuation of a previous claim, shorter durations are accepted.
Applications submitted after the official deadline are typically rejected, so planning is essential. Maintaining proper records of VAT invoices and expense documentation ensures eligibility and timely submission.
For a broader context on timelines and regulatory compliance, explore Commenda’s Sales Tax Guide.
What Can You Claim?
Denmark allows refunds for a wide range of business-related expenses incurred in the course of legitimate commercial activities within the country. The Denmark VAT refund applies to goods and services that are directly tied to business operations and not used for private purposes.
Typical Eligible Expenses Include:
- Accommodation and lodging: Hotel bills, serviced apartments, and temporary stays related to business travel.
- Meals and restaurants: Partial refunds (usually 25%) are available for business meals.
- Training, seminars, and conferences: Participation costs for employee training or professional development.
- Exhibitions and trade fairs: Booth rentals, promotional materials, and registration fees.
- Advertising and marketing: Local media, event sponsorships, and brand campaigns in Denmark.
- Office-related purchases: Stationery, printing, and consulting services.
- Imported goods: VAT paid on imports for commercial use in Denmark.
Refunds are processed in Danish kroner (DKK), with a minimum threshold of DKK 3,000 for quarterly claims and DKK 400 for annual applications.
Businesses can streamline their claims by using automated systems, such as a VAT refund calculator, to accurately estimate the amounts recoverable.
What Expenses Are NOT Eligible for a VAT Refund in Denmark?
While Denmark offers generous refund opportunities, some expenses are strictly non-refundable under Danish VAT law to prevent misuse.
The following cannot be claimed under a Denmark VAT refund:
- Entertainment and hospitality expenses, including gifts or leisure activities.
- Meals and accommodation for business owners and employees not tied to direct business functions.
- Passenger vehicles (with fewer than nine seats).
- Fuel and personal transportation costs are not reimbursed unless used exclusively for commercial delivery.
- Private or non-business purchases.
- Goods and services are exempt from VAT, such as certain medical or educational services.
These exclusions are consistent with Denmark’s Momsloven (VAT Act) and ensure compliance with Danish tax integrity rules. Maintaining clear boundaries between corporate and personal expenses reduces risk during any Sales Tax Audit.
Are Non-Denmark Businesses Eligible for a VAT Refund?
Yes. Non-Danish businesses outside the EU can apply for a Denmark VAT refund, provided their home country maintains a reciprocal VAT agreement with Denmark.
Applications are made using Form 31.004 – “Refund of VAT to Businesses Outside the EU.” The form, available in Danish, English, German, or Swedish, must be submitted to:
Skattestyrelsen (Danish Tax Agency) – Nykøbingvej 76, Building 45, 4990, Sakskøbing, Denmark
Foreign applicants must attach:
- A certificate of business registration from their home country (valid for one year).
- Original or scanned VAT invoices and proof of payment.
- A power of attorney if filing through a representative.
The Danish Tax Agency typically issues decisions within eight months, with payments made directly to the applicant’s bank account.
Step-by-Step: Reclaiming VAT for Danish Businesses
For Domestic Businesses
- Ensure VAT Registration: Confirm your DK VAT number is valid through the Danish Tax Portal (TastSelv Erhverv).
- Verify Eligible Purchases: Identify deductible expenses such as utilities, consulting fees, and raw materials.
- File Periodic VAT Returns: Submit through TastSelv Erhverv within statutory deadlines.
- Attach Documentation: Include VAT invoices with supplier details and payment evidence.
- Meet Filing Deadlines: Late submissions may result in penalties or denial of refund credits.
For further reference on domestic filing requirements, visit Economic Nexus and Physical Nexus.
For Overseas Businesses (Non-EU)
- Confirm Reciprocity Agreement: Ensure your home country has a VAT refund agreement with Denmark under the 13th Directive.
- Complete Form 31.004: Attach continuation sheets if your claim includes more than eight invoices.
- Attach Documentation: Include VAT invoices, import receipts, proof of payment, and certificate of registration.
- Submit Application: Send electronically or via post to Skattestyrelsen before 30 September of the following year.
- Monitor Refund Status: Expect processing within eight months; payments are typically made in DKK.
This process clarifies how VAT refund works in Denmark and highlights how to get VAT tax refund efficiently across borders.
Documentation and Compliance Checklist
When preparing a Denmark VAT refund, ensure your paperwork is audit-ready and fully compliant.
Required Documents Include:
- Original or clear copies of VAT invoices showing supplier details.
- Proof of payment (bank transfers, receipts, or import VAT statements).
- Certificate of registration, valid within 12 months.
- Bank account details for refund remittance.
- Power of attorney (if a third-party agent is used).
- Correctly filled Form 31.004.
Invoice Requirements:
- Invoice date and number.
- Supplier name, address, and VAT number.
- Buyer’s details.
- Description of goods/services.
- VAT rate and total amount.
Maintaining this documentation ensures faster processing and compliance with Denmark’s Statute of Limitations for VAT audits.
How to Stay VAT-Compliant With Your Paperwork
Denmark emphasizes digital recordkeeping for accuracy and audit readiness. While e-invoicing is mandatory mainly for public-sector transactions, private businesses are strongly encouraged to adopt digital systems.
Best Practices for Compliance:
- Store digital copies of invoices in PDF or XML format.
- Retain all records for at least five years.
- Ensure invoices meet Danish VAT formatting rules.
- Periodically audit internal controls for accuracy.
Proper record management makes claiming a VAT refund online faster and more secure. For more detailed compliance advice, review Commenda’s Sales Tax Compliance guide.
How Commenda Simplifies Your VAT Refund Process
Applying for a Denmark VAT refund can be complex, especially when managing multi-country operations or handling high-volume invoices.
Commenda simplifies this process through:
- Automated VAT recovery workflows integrated with global accounting systems.
- Country-specific compliance knowledge for both EU and non-EU refund schemes.
- Deadline tracking and real-time refund status updates.
- Audit-ready documentation aligned with Skattestyrelsen’s requirements.
Commenda’s Sales Tax Platform helps businesses reclaim cross-border VAT efficiently while ensuring full regulatory compliance. Our experts also assist with Sales Tax Permits and complex refund audits, providing end-to-end visibility into your tax recovery lifecycle. Book a demo call with Commenda today!
FAQs
1. What is the current VAT rate in Denmark?
The standard VAT rate in Denmark is 25%, one of the highest in Europe. It applies to most goods and services, including accommodation, business travel, and professional services. Some goods and services, such as exports and international transport, may be zero-rated for VAT. Understanding this structure is essential before applying for a VAT refund, as it determines which expenses are eligible and which are not.
2. Can non-EU companies apply for a Denmark VAT refund?
Yes. Non-EU companies can claim a refund under the 13th Directive, provided that their home country has a reciprocity agreement with Denmark. This means Denmark must offer the same refund rights to businesses from your country as your government offers to Danish companies. The claim is processed through Skattestyrelsen (the Danish Tax Agency) using Form 31.004.
3. What is the deadline for submitting a VAT refund claim in Denmark?
All VAT refund claims must be submitted by 30 September of the year following the year in which the expenses were incurred. For example, if your business incurred VAT in 2024, your application must be submitted to Skattestyrelsen by 30 September 2025. Late submissions are not accepted, and missing the deadline usually results in forfeiture of the right to reclaim VAT.
4. Which business expenses qualify for VAT refund in Denmark?
Denmark allows VAT refunds on a wide range of business-related expenses, including:
- Accommodation and hotel costs during business travel
- Participation fees for conferences, exhibitions, and trade fairs
- Marketing, advertising, and consulting services
- Office supplies and professional training courses
- Imports and goods purchased for business use
It’s vital to ensure all expenses are directly linked to business activities and supported by valid invoices that show the Danish VAT amount.
5. What types of expenses are excluded from VAT refunds?
Certain expenses are non-refundable under Danish VAT rules. These include:
- Entertainment, hospitality, and gifts
- Meals for employees not linked to business events
- Passenger vehicles used for mixed or private purposes
- Fuel and transport-related costs for personal use
- Non-business or private expenses
These restrictions are based on Denmark’s Momsloven (VAT Act), which ensures that only legitimate business-related costs are refunded.
6. How long does it take to receive a VAT refund from Denmark?
The Danish Tax Agency typically processes refund applications within eight months of receiving a complete submission. However, delays can occur if documentation is incomplete or if clarification is required. Refunds are usually made in Danish kroner (DKK), and payments can be deposited directly into your business bank account.
7. What documents are required when applying for a VAT refund?
Applicants must provide a complete and compliant documentation set, including:
- A completed Form 31.004 (Refund of VAT to Businesses Outside the EU)
- Original or scanned copies of invoices with Danish VAT details
- Proof of payment for VAT on imports or services
- A certificate of business registration from the home country (valid within the last 12 months)
- Power of attorney, if an agent files the claim on your behalf
Ensuring these documents are accurate and complete minimizes the risk of rejection or processing delays.
8. How can Commenda assist with Denmark VAT refunds?
Commenda simplifies the complex VAT refund process by providing:
- Automated refund tracking systems integrated with your accounting software
- Expert guidance on reciprocity and compliance with Danish tax rules
- Accurate documentation management to meet Danish Tax Agency standards
- Deadline monitoring to prevent missed filings
With Commenda’s end-to-end VAT management, your business can efficiently recover eligible refunds while staying compliant across multiple jurisdictions.
