When you trade with countries beyond the Danish borders, the VAT rules depend on whether you trade in goods or services and whether you trade with businesses or private individuals. When you export goods out of the EU (to third countries), you do not have to charge Danish VAT on the sale. However, there are a few exceptions to this rule. You have to document that the conditions for any sales exempt from VAT have been met.

Register as an exporter at www.indberet.virk.dk 

 

You have to be registered as an exporter and apply for an EORI number.  EORI is a register of all EU businesses trading with countries outside the EU. Register your business at www.indberet.virk.dk.

You must report your sales to the export system (e-Export). A shipping agent is often used for this purpose.

Registration form for the e-Export system

Condition for sales of goods exclusive of VAT outside the EU

You need to document that the goods were exported out of the EU in one of the following ways:

  • an export declaration with an exit certificate in e-Export
  • written order
  • correspondence with the buyer

If as a Danish business you sell your services to businesses in countries outside the EU, you normally do not have to charge Danish VAT.

Conditions for sales of services exclusive of VAT to non-EU countries

You need to document that the buyer is a registered business.

You need to check the customer’s data and identity. It is possible to find this information on the Internet. Please save a print as documentation.

If in doubt whether the customer is a business, ask the customer for proof, such as:

  • a certificate issued by the tax authorities in the buyer’s homeland documenting that the customer has financial activities or
  • the customer’s VAT number or similar number used to identify businesses in the buyer’s homeland.

If you are not able to establish whether the buyer is a business, you should treat the sale as a sale to a private individual outside the EU.

Services where you should charge Danish VAT

For certain services, you should always charge VAT as a Danish business even if the buyer is a non-EU resident. These include:

  • Services related to property located in Denmark (such as construction services).
  • Passenger transport taking place in Denmark (coach services).
  • Access to events relating to culture, art, sports, science, education, entertainment, etc. (such as fairs, exhibitions, seminars and courses) taking place in Denmark.       
  • Restaurant and catering services carried out in Denmark.
  • Short-term hiring out of means of transport provided to a customer in Denmark.

For certain services, you should always charge VAT as a Danish business - even if the buyer is a non-EU resident - if the buyer uses the service in Denmark. These services include:

  • Sale of rights
  • Advertising
  • Consultancy services
  • Negative obligation (such as non-competition clauses)
  • Banking, financing and insurance services (not including hiring of boxes)
  • Hiring out of labour
  • Hiring out of movable tangible property
  • Transport and transmission of gas, electricity, heat and cold

If the services concern the buyer’s business, the buyer can apply to have the VAT refunded.

For instructions on how to claim a refund of VAT paid abroad, please see Få moms betalt i udlandet tilbage (in Danish).

Main rule: If as a Danish business you sell your services to private individuals in countries outside the EU, you have to charge Danish VAT. 

However, there is an exception to this rule. For the following types of services, you only have to charge Danish VAT on sales to private consumers if the services are used in Denmark:

  • Arrangement of sales or purchases carried out in Denmark.
  • Services related to immovable property located in Denmark (e.g. construction services).
  • Passenger transport carried out in Denmark (coach services).
  • Access to events and other services related to culture, arts, sports, science, education, entertainment, etc. (such as exhibitions, ballet, theatre, concerts, sports events, fairs, seminars, conferences and courses) that take place in Denmark.
  • Restaurant and catering services carried out in Denmark.
  • Short-term hiring out of means of transport provided to a customer in Denmark.
  • Long-term hiring out of vessels (for instance boats) that are made available to a customer in Denmark.
  • Transportation of goods taking place in Denmark.
  • Transport of goods between two EU countries when this transport is started in Denmark.
  • Activities related to transport (such as loading, unloading, handling and packaging) carried out in Denmark.
  • Assessment of and other work related to movable tangible property carried out in Denmark.

Further, you should only charge Danish VAT on the following services to private consumers in non-EU countries if the buyer uses the service in Denmark:

  • Sale of rights
  • Advertising
  • Consultancy services
  • Negative obligation (such as non-competition clauses)
  • Banking, financing and insurance services (not including hiring of boxes)
  • Hiring out of labour
  • Hiring out of movable tangible property
  • Transport and transmission of gas, electricity, heat and cold

If, instead, you deliver these services to private consumers in Denmark or another EU country, you must charge Danish VAT unless the services are to be consumed outside the EU.

In addition, businesses set up outside the EU must also register for VAT and charge Danish VAT on sales of the above 8 services (sale of rights, etc.) to private consumers in Denmark if the services are to be consumed in Denmark.

When you sell goods and services to countries outside Denmark, you must keep special accounts in your business accounts.

VAT accounts

You must report the value of the sales exempt from VAT of goods and services to countries outside the EU in box C of the VAT return.

 

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