Danish VAT for beginners: how VAT works in your business

When must you register for VAT?

You must register once your VAT-liable turnover exceeds DKK 50,000 within 12 months. You can register voluntarily before that — worthwhile if you have large start-up purchases you'd like the VAT back on.

Output VAT and input VAT

Output VAT is the 25% you add on top of your prices. Input VAT is the VAT you pay on business purchases — and that part you can deduct.

An example: you invoice DKK 10,000 + 2,500 VAT and buy supplies for DKK 4,000 + 1,000 VAT. You then owe 2,500 − 1,000 = DKK 1,500 to the Tax Agency. If you bought more VAT than you sold, you get money back.

What can you deduct VAT on?

The main rule: you can deduct VAT on purchases used in your VAT-liable business — goods, software, equipment, commercial rent and the like. There are important exceptions: no VAT deduction on buying and running white-plate cars, and only partial deduction on restaurant visits, for example.

Documentation is always required: no invoice or receipt showing VAT, no deduction.

VAT-exempt sectors

Some services are VAT-exempt — including healthcare, education and passenger transport. If you're exempt you don't charge VAT, but you can't deduct input VAT either, and you often pay payroll tax (lønsumsafgift) instead. Mixed businesses must split their VAT — get help with that one.

How to never do this math yourself

At Numina, VAT is calculated automatically as your receipts are booked — and your bookkeeper files with the Tax Agency before the deadline. The VAT treatment is set correctly on every single receipt, including the tricky ones.

The terms behind it, briefly explained

Finally a quick glossary of the terms from this article — brief and concrete, the way we explain them to our customers.

What is moms (Danish VAT)?

Moms is the Danish VAT: a 25% tax that registered businesses add to their sales and settle with the Tax Agency. VAT on the business's own purchases can generally be deducted.

Registration is mandatory once revenue exceeds DKK 50,000 over 12 months. VAT is filed quarterly or half-yearly for most businesses.

What is salgsmoms (output VAT)?

Salgsmoms (output VAT) is the 25% you charge on top of your own sales and owe onwards to the Tax Agency.

Output VAT is not your money — set it aside mentally (or literally) so the VAT bill never surprises you.

What is købsmoms (input VAT)?

Købsmoms (input VAT) is the VAT on the business's own purchases. It can generally be deducted, so you only settle the difference between output and input VAT.

The requirement is a valid receipt showing VAT. Some purchases have limited or no deduction — e.g. white-plate cars and restaurant visits.

What is momsregistrering (VAT registration)?

Momsregistrering is registering the business for VAT. It's mandatory when VAT-liable revenue exceeds DKK 50,000 within 12 months.

You can register voluntarily below the threshold — that unlocks VAT deductions on start-up purchases. Once registered, you must file every period, even at zero activity.

What is a momsangivelse (VAT return)?

A momsangivelse is the filing of the business's output and input VAT to the Tax Agency for a VAT period. The difference is what you pay or get refunded.

You file in TastSelv Erhverv on skat.dk, and the deadline depends on your VAT period. With nothing to report you must still file a zero return — forget it, and the Tax Agency makes a provisional assessment and charges a fee.

What is a momsperiode (VAT period)?

The momsperiode is the period you report VAT for — monthly, quarterly or half-yearly. It depends on the business's revenue.

New businesses start on quarterly VAT. Below DKK 5 million in revenue (and filing on time) you can move to half-yearly; above DKK 50 million means monthly. The Tax Agency adjusts the period based on your filings, but you can also request a shorter one.