VAT deductions: what can you reclaim — and how much?
Written by Mads Antonsen · bookkeeper at Numina
Updated July 17, 2026
As a rule you can reclaim the VAT on your purchases when the expense is used in your VAT-registered business. But some expenses only give a partial deduction — and a few give none at all. Here are the rules you'll actually need.
The main rule: full deduction for business purchases
If a purchase is used solely in your VAT-registered business, you can reclaim all of the VAT: goods, software, rent with VAT, marketing, your bookkeeper and accountant. The requirements are that you hold an invoice as documentation and that the expense genuinely relates to the business's VAT-liable sales.
If you sell VAT-exempt services — such as teaching or healthcare — you conversely have no deduction for the VAT on the purchases tied to them.
Restaurants: 25% of the VAT
VAT on restaurant visits can only be deducted at 25% — and only when the visit is strictly business-related, such as a client dinner or the staff Christmas party at a restaurant. The remaining 75% of the VAT is simply a cost.
Hotels: 100% of the VAT
VAT on business hotel stays in Denmark is fully deductible. But breakfast counts as a restaurant service with only 25% deduction — so always ask for an invoice where the room and the breakfast are itemised separately. If they're lumped into one amount, you risk losing the deduction.
Partial deduction for mixed use
If a purchase is used both privately and in the business — typically your phone and home internet — you can only deduct the share of the VAT that matches the business use. The share is set by a realistic estimate that you must be able to justify.
Cars: white plates are a no
- White-plate car: no VAT deduction on either purchase or running costs — even if the car is used in the business
- Yellow-plate car used solely for business: full VAT deduction on both purchase and running costs
- If you lease a white-plate car for more than 6 months, a specially calculated part of the VAT is deductible — the leasing company states the amount on the invoice
No VAT deduction: entertainment and gifts
Client gifts, flowers, receptions and other business entertainment (repræsentation) give no VAT deduction — however business-related the occasion. The only exception is the restaurant rule above. For income tax, entertainment is still 25% deductible — VAT and tax are two separate rulebooks.
Skip memorising the rules
At Numina, the bookkeeper and the AI put the right VAT code on every document — restaurants, hotels, partial deductions and all the rest — and your VAT is filed with the Danish Tax Agency before the deadline. You just make sure the receipts come in; the rest is included in the fixed price.
Stop keeping track of all this yourself
Numina's bookkeepers and AI handle bookkeeping, VAT and deadlines for you — at a fixed price with no lock-in. Accounting software included.
Can I deduct VAT without an invoice?
As a rule, no. A VAT deduction requires documentation — normally an invoice with the VAT itemised. A bank statement alone is not enough.
Is there a VAT deduction on the Christmas party?
If you hold it at a restaurant, you can deduct 25% of the VAT. If you hold it in your own premises, there is no VAT deduction on the food — but the expense is still fully deductible for income tax as a staff cost.
What's the difference between a VAT deduction and a tax deduction?
The VAT deduction is the VAT on the purchase, which you offset in your VAT return. The tax deduction is the expense itself, which reduces your taxable profit. Most operating costs give you both — but entertainment, for example, gives only a 25% tax deduction and normally no VAT.