When you close your business, it is important that you do it correctly, so you make sure you have access to the various systems and avoid subsequent charges such as taxes, duties and fees.

This guide will take you through the various steps you have to take before and after you close your business at www.virk.dk. It gives you an overview of whether you still have something to declare and if you owe money to or are entitled to a refund from the Danish Tax Agency.

When you close your business, please note that your business NemID will be cancelled and as a result, you will no longer have access to your business digital mailbox. As your business can still receive information in its digital mailbox after it is closed, you should remember to set up access to the mailbox via your CPR no. (civil reg. no.) and private NemID before you close down your business.

Further information on what you need to do before you close down your business. (Link only available in Danish).

Before you close your business, you should access your business tax account via E-tax for businesses (TastSelv Erhverv). The tax account gives you an overview of your business declarations, charges and payments to and from the Danish Tax Agency.

In your tax account, you can see if everything is settled before you close your business, including if you have made all the required declarations in order to avoid duties and paying too much VAT or A-tax, for example.

Log on to E-tax for businesses and check your business tax account 

Read more about your tax account

If you have already closed your business, you have to use your personal NemID to log on to E-tax for businesses. Once you have logged on, you select ‘Fortsæt som privatperson’ (Continue as a private individual) and not ‘Fortsæt som virksomhed’ (Continue as a business) as your business CVR no. has been cancelled.

Now, you are ready to deregister/close your business at www.virk.dk

Deregister your business at www.indberet.virk.dk

You have now closed your business, and if your business was registered for A-tax, excise duties or payroll tax, for example, you should make sure to declare all periods until the date you closed your business. Remember to submit your declaration for the relevant period, even if you will have to declare DKK 0.

Please see below what you should pay special attention to before you file your last VAT return and declare your last payroll tax:

 VAT

Read about what you have to do if your business was registered for VAT. Remember to come back to this page once you have read about deregistering for VAT.

Payroll tax

Read about what you have to do, if your business was registered for payroll tax (link in Danish). Remember to come back to this page once you have read about deregistering for payroll tax.

Once you have closed your business, you have to correct your business profit in your preliminary income assessment so that you will be paying the right amount of tax throughout the year.

Correcting your preliminary income assessment:

  1. Log on to E-tax for individuals
  2.  Select ‘Forskudsopgørelsen’ (Preliminary income assessment)
  3. Correct your business profit in field 221 or 435
  4. Check off the field ‘Virksomhedsophør’ (Close of business) so that your preliminary income assessment for the next year does not include business profit. You will find the field under ‘Andre felter’ (Other fields), ‘Selvstændig erhvervsdrivende’ (Own business).

You have to calculate your business profit and as a result you have to prepare your tax accounts form 1 January until the date you close your business. You must calculate gains or losses on the items you have removed from the business or sold to others, e.g. computers, inventories, furniture, vehicles and machinery to be included in your business profit.

Please note that you have to declare your business profit on your tax return in the year after your business closed. The tax return deadline is 1 July (however, 1 September in 2020 due to the coronavirus).

If you miss the deadline, you will be fined DKK 200 per day (however, maximum DKK 5,000).

Correcting your tax assessment notice/tax return:

  1. Log on to E-tax for individuals
  2. Select ‘Ret årsopgørelsen/oplysningsskemaet’ (Correct your tax assessment notice/tax return)
  3. Certain amounts will be preprinted. Decide whether these amounts are correct or not and correct the relevant amounts.
  4. Click ‘Næste’ (Next) and check box 71 that your business is closed.
  5. Enter your profits in box 111 or your loss in box 112. Check if there are any other boxes you need to complete.
  6. Scroll to ‘Regnskabsoplysninger’ (Accounting information) and click ‘Oplys’ (Declare). Enter the information in the relevant boxes.
  7. Click ‘Gem’ (Save). You will then be asked if you need to declare information for other businesses. If not, you click ‘Tilbage’ (Back).
  8. Decide whether you have anything else to declare. Remember, that your tax assessment notice covers both your business and your private financial situation.
  9. Click ‘Næste’ (Next) and you will see an overview.
  10. Click ‘Godkend’ (Accept). You can now see your tax assessment notice. (If something is incorrect, you will be asked to complete what is missing before a new tax assessment can be generated.)
  11. Your tax assessment notice shows you if you have paid too much tax and is entitled to a refund or if you have to pay additional tax.

Read more about how you pay tax on your own business

Even though you deregister your business, you still have to keep accounts and other relevant documents on file for a minimum of five years. This means you have to keep information such as your accounts, bookkeeping information and vouchers.

If you have purchased property or renovated the buildings you used in connection with your business, you have to keep the accounting records on file for 10 years after the date of purchase of the property or renovation of the buildings.

You can write to us or call us on (+45) 72 22 28 27 if you have any questions to how you close your business.

Please see our legal guide (in Danish) for further legal information.