If your business provides distance selling of goods and sells number of services to private consumers in the EU, special rules apply for business to declare and pay VAT in the member country where the consumption will take place. From 1 July 2021, a new joint EU amount limit will be implemented, among other things, requiring businesses in the EU to pay VAT in the country of consumption if they providing distance selling of goods and certain services (electronically supplied services, including telecommunications services and radio and tv broadcasting services) to other EU countries and their total sales exceed EUR 10,000 per year. Please see New rules from 1 July 2021 below for further information. 

These special rules only apply to sales to private consumers in the EU. Usually, VAT on sales to private consumers is paid in the country where the business is registered.

However, in order to make it easier for the businesses to charge, declare and pay VAT according to the special rules, an optional EU scheme has been established so that your business can be registered in only one country and declare and pay the EU VAT in that country.  So far, this scheme is known as One Stop Moms (VAT Mini One Stop Shop Scheme) in Denmark. From 1 July 2021, it will be called Moms One Stop Shop (VAT One Stop Shop Scheme) in Denmark.

You can read more about the new rules and about the VAT One Stop Shop Scheme on this page.


Generally, the new rules on sales to private consumers in the EU are as follows:

  • In relation to distance selling of goods and sale of certain services (electronically supplied services, including telecommunication services and radio and television broadcasting services) a common EU limit was introduced meaning that only when a business' total sales to other Eu countries exceed EUR 10,000 per calendar year, the VAT should be paid in the country of consumption. However, this limit only applies to businesses established within the EU.
  • It also means that national amount limits for distance selling of goods will be abolished.
  • Several types of services are included in the rules allowing businesses to declare VAT via the VAT One Stop Shop Scheme.
  • As regards import from non-EU countries to private consumers in the EU, imports of a value of less than DKK 80 will now be subject to VAT - and VAT will be charged from the first krone.
  • When the business sells goods or services it has to charge different VAT amount from its customers (private consumers) depending on in which country the consumer lives and where the goods/services will be used.

The VAT One Stop Shop Scheme also includes the new rules


The VAT Mini One Stop Shop scheme will cease to exist, but it will be include as part of the new VAT One Stop Shop scheme. Read more about the VAT Mini One Stop Shop scheme below under VAT Mini One Stop Shop - schemes and advantages.

There, you can also read more about the three individual schemes under the VAT One Stop Shop scheme: the EU scheme, the non-EU scheme and the import scheme.

New rules from 1 July 2021

The new rules were scheduled to take effect on 1 January 2021, but due to the Corona situation the EU countries chose to postpone the commencement date of the new VAT rules by six months from 1 January 2021 to 1 July 2021.

Until then, the current rules on VAT sales to private consumers in the EU apply. Also, the VAT Mini One Stop Shop scheme is available until 1 July 2021. Read more about the current rules on electronically supplied services, telecommunications services and radio and tv broadcasting services.

Businesses that have already signed up for the current VAT Mini One Stop Shop Scheme will automatically be part of the new VAT One Stop Shop Scheme.


If, from 1 January 2019 until 30 June 2021 your business provides electronically supplied services, telecommunications services and radio and tv broadcasting services to private consumers in the EU for less than EUR 10,000 during a calendar year, you do not need to declare and pay VAT in all the EU countries where you supply private consumers. You may in stead choose to declare and pay the VAT in the home country of your business.

New common limit for distance selling and electronically supplied services, etc.

From 1 July 2021, distance selling of goods inside the EU will be included in a new common EU amount limit that already applies to electronically supplied services, etc. This limit defines when businesses have to declare and pay VAT in the country of the consumer and when they can do so in their own country.

Until 1 July 2021, the Danish limit for distance selling of goods is DKK 280,000. The new common EU limit for the total of distance selling of goods and sale of electronically supplied services, telecommunicaitons services and radio and tv broadcasting services to other EU countries is EUR 10,00 per calendar year.

Distance selling is considered to be the sale of goods that are sold from a business and sent to a private consumer crossing a national border on its way where the seller is involved with the transport of the goods. This applies most often to online sales.

When sales exceed the limit of EUR 10,000

If your business provides distance selling of goods and/or sale of electronically supplied service and the total exceeds EUR 10,000 per calendar year, you have to declare and pay VAT in all of the EU countries to which your goods or services are dispatched or where the consumption will take place. However, the optional VAT One Stop Shop scheme (the EU scheme) allows you to register your business in one country and declare and pay your EU VAT there.

Read more below about the various schemes in VAT One Stop Shop - schemes and advantages.

Sales of less than EUR 10,000

If your business has distance selling of goods and/or sales of electronically supplied services, telecommunications services and radio and tv broadcasting services which does not exceed EUR 10,000 per calendar year, you do not need to declare and pay VAT in all of the EU countries to which the goods or services are dispatched of the consumption will take place. Then, you have to remember that in this case you have to pay Danish VAT and file your VAT return via your normal business routines.

If your business has sales for less than EUR 10,000, you can still choose to use the optional VAT One Stop Shop scheme (the EU-Scheme). If you choose to use this scheme, your business has to be registered for the scheme and declare and pay VAT through the scheme.

Read more below about the various schemes in VAT One Stop Shop - schemes and advantages.

If your business is located outside the EU and sells goods or services to private consumers in the EU, the VAT should be paid in the home country of consumption. The limit of EUR 10,000 does not apply to these businesses.

Sale of services

If your business provides services for private consumers in the EU, it has to declare and pay VAT on sales of services in all the EU countries where your consumers live.

If your non-EU business provides services for private consumers in the EU, your business may register for the optional VAT One Stop Shop scheme (the non-EU scheme) and declare and pay VAT in only one country. Read more about the non-EU scheme below in VAT One Stop Shop - schemes and advantages.

Sales of goods of maximum EUR 150

Other rules apply to the sale of goods. From 1 July 2021, imports from non-EU countries of a value of less than DKK 80 will no longer be exempt from VAT. This means that VAT will be charged from the first krone on all shipments of goods.

If your business outside the EU provides goods to private consumers in the EU and the value does not exceed EUR 150, your business may register for the optional VAT One Stop Shop Scheme (the import scheme) and declare and pay VAT in only one country. Read more about the import scheme below under VAT One Stop Shop - schemes and advantages.

Sale of goods exceeding EUR 150


If you sell goods for more that EUR 150 to private consumers in the EU, your business cannot make use of the VAT One Stop Shop scheme. Normally the private EU consumer will be paying the import VAT and it is typically the shipping agency that charges the import VAT at the time of handing over the goods.

If your total sales to other EU countries exceed EUR 10,000 a year, you have to charge your private consumers different VAT rates depending on in which country the consumer lives or where the goods/services will be used.

Once the new rules take effect, you should: 

  • be able to charge different VAT rates (standard rates or reduced rates) and VAT amounts on sales to various EU countries when you provide a private consumer with goods or services (this could be via a web shop).
  • be able to determine the individual goods or services as several EU countries differentiate their VAT. For example: A country's standard VAT rate may be 22%, but it has reduced the VAT rate on books to 20% and on medicine the VAT rate is 10%. See an overview of current VAT rates in the EU.
  • have specific accounts in your business accounts for this kind of sales. Read more in Danish about accounts in our legal guide section D.A. 16.3.8 Accounts.
  • specifically check in which country the consumer want to use the goods or services.
  • keep your accounts for 10 years.
  • declare and pay VAT in each individual EU country. VAT One Stop Shop offers you a very simple way to do this which you can read more about on this page.


In order to make it easier for businesses to declare and pay VAT on sales to private consumers in the EU, the current VAT Mini One Stope Shop Scheme will be extended to include goods and services on which the VAT should be paid in the country of consumption. Such goods and services are typically sold online to consumers in the EU. From 1 July 2021, it will be called Moms One Stop Shop (VAT One Stop Shop Scheme) in Denmark.

The VAT One Stop Shop Scheme may reduce the administration of EU businesses by enabling them to declare and pay VAT on sales to private consumers in the EU in only one EU country.

The new schemes take effect from 1 July 2021

From 1 April 2021 you may sign your business up for the new VAT One Stop Shop schemes (the EU scheme, the non-EU scheme and the import scheme), and from 1 July 2021 the new rules take effect. As a result, businesses that are signed up for the schemes may start declaring and paying VAT to the country in which they have signed up from 1 July 2021.

Until then, the current rules on VAT sales to private consumers in the EU apply. Also, the VAT Mini One Stop Shop scheme remains until 1 July 2021. Read more about the current VAT Mini One Stop Shop Scheme.

The EU scheme (EU businesses)

The EU scheme applies for businesses in Denmark or in other EU countries. It includes distance selling of goods and sale of certain services to private consumers in other EU countries where the VAT should be paid in the country of consumption. This means that you can declare VAT in your home country in stead of having to register in the individual countries. The scheme also applies to businesses that are registered in the EU but established outside the EU if it provides distance selling of goods inside the EU.

Read more about the EU scheme.

The non-EU scheme (for businesses outside the EU)

The Non-EU scheme applies to businesses established outside the EU (a so-called third country) that have no fixed place of business in the EU. The non-EU scheme includes services on which VAT should be paid in the country of consumption. This means that businesses outside the EU should not register in the countries to which they provide services for private consumers, but they can choose to register in one country from which they can declare VAT on goods sold to the rest of the EU.

Read more about the non-EU scheme.

The import scheme (import of goods of a value of less then EUR 150 to private consumers in the EU)

The import scheme is new and aimed at businesses providing distance selling of goods imported from non-EU countries for private consumers in the EU and of a value not exceeding EUR 150. Distance selling is considered to be the sale of goods that are sold from a business and sent to a private consumer crossing a national border where the seller is involved with the transport of the goods. This applies most often to online sales.

The import scheme is established as the VAT exemption for goods of a value of less than DKK 80 from non-EU countries will be abolished. If the business is registered outside the EU and want to sign up for the scheme, it should sign up via an intermediary and this intermediary should be registered in an EU country.

If your goods are subject to certain excise duties (such as alcohol and manufactured tobacco) you cannot include these goods in the import scheme.

If the business is selling goods of a value of more than EUR 150 from a country outside the EU for private consumers in the EU, it cannot sign up for the import scheme.

Read more about the import scheme.

Your business IOSS number is confidential

When your business is registered for the import scheme, you will receive an IOSS number (or an IM number) for shipping your goods. The IOSS number may not be visible on your shipment (package/envelope).

The IOSS number is used for customs clearances purposes for a shipment. In this way, the Danish Customs Agency (Toldstyrelsen) can see that you settle VAT on the value of your goods via the One Stop Shop scheme. The goods are thus delivered directly to the buyer without any further VAT charge.

You have to be very carful in your use of the IOSS number - and you may not give it to anybody of no relevance to your business. Your business may risk becoming liable for all shipments registered with your IOSS number, even if it has been abused by others. This is why, you should only use your IOSS number for business sales.

On 1 January 2015, the EU Commission passed new legislation to minimise the administrative burden on the corporate sector and to ensure fairer competition across the EU while at the same time reducing VAT fraud. As a result, businesses are now required by law to declare and pay VAT in all the EU countries in which they sell electronically supplied services, telecommunications, broadcasting and electronic services to private consumers.

A voluntary scheme, the VAT Mini One Stop Shop, was set up to make it easier for businesses to comply with the law. In Denmark, this scheme has been known as One Stop Moms/VAT Mini One Stop Shop. From 1 July 2021, it will be called Moms One Stop Shop (VAT One Stop Shop Scheme) in Denmark. The scheme allows businesses to register, declare and pay EU VAT in only one country. The advantage of the scheme is that the business does not have to register in and declare VAT to each EU country to which it sells its services, but it can do so to its usual tax authority (in Denmark this is the Danish Tax Agency).

There are two versions of the current VAT Mini One Stop Shop: The EU scheme (for businesses in the EU) and the non-EU scheme (for businesses outside the EU). Read more about the rules on the two current versions of the scheme.

If your business is already sighed up for the current VAT Mini One Stop Shop Scheme, you can read more about how you should respond to the new VAT One Stop Shop Scheme.

Your business automatically becomes part of the VAT One Stop Shop Scheme

Your business will automatically be transferred to the new VAT One Stop Shop Scheme from 1 July 2021. You need to enter further registration information about your business to observe the scheme requirements. The Danish Tax Agency will contact you when you can add this information.

Deregistration

If you want to deregister your business from the VAT Mini One Stop Shop Scheme and not have your business transferred automatically to the new VAT One Stop Shop Scheme, you can read more about deregistering from Mini One Stop Shop.

Correcting declarations prior to 2021

From 1 July 2021, you have to declare VAT on sales to private consumers in the EU via the new scheme that we are developing. If, on the other hand, you have corrections to declaration periods prior to 1 July 2021, you have to make such corrections in the old scheme. This is why you will continue to have access to the VAT Mini One Stop Shop scheme.

Declaring your VAT by file upload

You can declare your VAT on sales to private consumers in the EU by uploading a CSV file with your declaration in E-tax for businesses (TastSelv Erhverv). In this guide (currently in Danish only) you can see how you do this and what the file should contain.

Language

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