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      Value added tax (VAT) generally applies to all supplies of goods and services in Denmark. The standard local 25% VAT rate thereby represents a substantial financial impact on most transactions.

      We experience an ever growing attention to indirect tax compliance. Not only by the tax authorities, but especially by companies seeking to waive liabilities and costs and to optimise their savings and procedures.

      Our Indirect Tax team has a quite unique practical understanding of business challenges and opportunities. This means that we are able to provide clear and solid advisory services tailored to specifically address your company's needs and concerns. In that lies the key to potentially maximising your savings, avoiding risks and costs and ultimately minimizing your internal business process burdens. 

      Acknowledged as leading experts in Indirect Tax practices
      Our team consists of some of Denmark's most well-renowned, experienced and highly educated specialists within our field. Together, we share a passion for providing top-of-class strategies and sustainable advantages for all our clients.

      Martin Henri Leth With

      Partner, VAT, Customs & Excise Duties

      KPMG Acor Tax in Denmark



      What we do

      Our Indirect Tax Team offers solid and highly qualified advisory and compliance services regarding VAT, customs and excise duties. We will gladly discuss and comment on any transactions or questions that your company may have in that regard.

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      VAT compliance is essential for businesses, particularly in Denmark, where unpaid VAT can result in a high annual interest rate of 12.60% (2025). 

      Accurate and timely VAT returns help businesses stay compliant, avoiding costly fines and penalties, while ensuring financial stability and smooth operations by reducing the risk of audits or investigations by the Tax Authorities.

      We guide you on VAT refunds and can provide you with an overview of expenses that entitle you to a VAT deduction in Denmark, EU, and other countries.

      VAT exemptions refers to specific goods or services that are not subject to VAT. Exemptions can vary by country and typically include items such as healthcare services, educational services, financial services, and certain types of food products. When a product or service is exempt from VAT, it means that the seller does not charge VAT on the sale, and the buyer does not pay VAT.

      Countries all over the world are in the process of implementing E-invoicing and digital reporting solutions, that can differ from country-to-country, which entails a complex task for businesses operating across borders.​

      In Denmark, the Danish Bookkeeping Act is a step in the direction towards digitalization of bookkeeping and VAT reporting, that imposes requirements on companies established in Denmark and from 2026 also on companies registered for VAT purposes in Denmark.

      Are you in control of your digital VAT compliance?

      Our customs duty and trade services support your movement of goods across boarders, global supply chain, economic relationships and international cooperation in order to optimize your structure and avoid risks.

      Our customs duty and trade services include among:

      • An overall hands on analysis of the impact on the different customs duty and trade regimes in your supply chain
      • Tariff classification
      • Origin of goods for imported and exported goods
      • Optimization of customs value including transfer pricing
      • Speciel beneficial customs arrangements such as bonded warehouse, inward processing, outward processing and end-use
      • Trade restrictions, among antidumping customs duties, dual use and a number of industry specific issues

      Decarbonization and green taxes are pivotal in driving sustainable economic practices and combating climate change. Decarbonization involves reducing carbon emissions through cleaner energy sources and innovative technologies, fostering a transition to a low-carbon economy.

      As the regulatory environment around decarbonization and green taxes continues to evolve, we offer services to help you adapt and thrive in this green transition.

      Regardless of whether a permanent establishment exists, businesses may still need to register for VAT in Denmark. Activities carried out in Denmark could create a fixed establishment for VAT purposes, depending on the substance and activities in Denmark.

      Even without a fixed establishment, VAT registration might be necessary when purchasing goods or services in Denmark or from foreign vendors/subcontractors. We conduct a detailed analysis of your business activities to determine and cover all your indirect tax (VAT, customs, excise duties etc.) obligations and ensure compliance.



      Deduction of VAT - 2025 overview

      What type of expenses entitle you to a VAT deduction?

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      Our other relevant services

      Navigating tax and regulatory requirements for business or project establishment in Denmark.

      We deliver sustainable tax solutions for today and tomorrow.

      Driving efficiency and growth through innovative strategies and data-driven solutions.

      Explore our insights on VAT

      Your one-stop destination for VAT insights, events, and services.

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