Do I Need to Register for VAT in Denmark as a Foreigner?

Understanding the Basics of Danish VAT for Foreigners

Value Added Tax (VAT), known in Danish as “moms,” is a general consumption tax added to most goods and services in Denmark. The standard VAT rate is 25%, and it applies at each stage of the supply chain until the final consumer. For foreign businesses, the core question is whether their activities in Denmark are significant enough to trigger an obligation to register for Danish VAT.

Denmark follows EU VAT rules as transposed into Danish law, but there are national specifics that determine when a foreign company is considered to be “performing taxable supplies in Denmark.” The answer depends on what you sell, to whom you sell, where the customer is located, and whether you have any physical presence or fixed establishment in Denmark.

When Does a Foreign Company Need to Register for VAT in Denmark?

Foreign businesses must typically register for Danish VAT when they carry out taxable supplies that are considered to take place in Denmark and no reverse charge mechanism shifts the tax liability to the customer. In many cross‑border B2B situations, the Danish customer accounts for the VAT under the reverse charge rules, which means the foreign supplier may not need to register. However, this is not always the case.

You will generally need to register for VAT in Denmark if you:

- Supply goods from a stock or warehouse located in Denmark

- Perform installations or assembly of goods in Denmark under certain conditions

- Provide services to private consumers in Denmark where the place of supply is Denmark

- Operate an online shop or distance sales model supplying goods to Danish consumers beyond relevant thresholds

- Run events, conferences, exhibitions, or admission‑based activities in Denmark for which VAT is due locally

Whether your company is established within or outside the EU also affects how these rules apply. Non‑EU businesses often face stricter or more direct registration obligations, particularly when supplying electronic or digital services to consumers.

Understanding the VAT Registration Thresholds

For businesses established in Denmark, there is a domestic turnover threshold before mandatory VAT registration applies. However, for foreign companies, the situation is different. In many cases, there is effectively no threshold: as soon as you start carrying out taxable activities in Denmark (where you are liable for the VAT), you are required to register.

Distance sales to Danish consumers, such as e‑commerce shipments from another EU state, are generally governed by the EU's One Stop Shop (OSS) scheme and the EU‑wide distance selling threshold. If your total distance sales to EU consumers exceed that common threshold, you must account for VAT in the consumer's country. You can choose to register for OSS in one EU country and then charge Danish VAT on Danish orders via that system, or, in some situations, register directly in Denmark. For non‑EU businesses, the Import One Stop Shop (IOSS) may be relevant for low‑value goods imported into the EU and sold to Danish consumers.

If your activity in Denmark is not covered by OSS/IOSS and the reverse charge does not shift the liability to your customers, VAT registration in Denmark from the first taxable transaction is often expected.

Physical Presence and Fixed Establishment in Denmark

A foreign company may also trigger Danish VAT obligations by having a permanent or “fixed establishment” in Denmark. This is generally a place of business characterized by a sufficient degree of permanence and suitable structure in terms of human and technical resources to provide taxable supplies locally. Typical examples include:

A Danish branch or office

A warehouse in Denmark used for domestic supplies

A workshop, production site, or service center

A long‑term construction site or installation project that meets certain duration criteria

If you have such a fixed establishment, the Danish tax authorities (Skattestyrelsen) may consider that your supplies from that establishment are domestic supplies, making Danish VAT registration compulsory. Even where your head office is abroad, the activities of the Danish establishment may require separate Danish VAT accounting.

Online Businesses, E‑Commerce and Digital Services

Foreign online sellers frequently face questions about Danish VAT, especially those selling to Danish consumers. Your obligations depend on how you sell:

If you sell physical goods from another EU country to consumers in Denmark, and you exceed the EU‑wide distance selling threshold, you must charge Danish VAT on those sales. You can handle this via OSS in your home country or by registering directly in Denmark if that suits your structure.

If you store inventory in Denmark (for example, through a fulfillment center), you are generally required to register in Denmark because the goods are supplied from within the country.

If you provide telecommunications, broadcasting, or electronic (digital) services to private consumers in Denmark, the place of supply is usually the consumer's location. EU‑established businesses typically use the OSS scheme to declare Danish VAT. Non‑EU companies may need a special non‑Union OSS registration or a direct registration, depending on their setup.

Marketplaces and platforms may, in some cases, be deemed the supplier for VAT purposes under EU rules, shifting the VAT responsibility away from the underlying seller. However, you should not assume this applies automatically; the specific contractual and legal arrangements must be examined.

Services to Danish Businesses and the Reverse Charge Mechanism

For many cross‑border B2B services within the EU, the place of supply is the customer's country, and the reverse charge mechanism often applies. This means that the Danish business receiving the service self‑accounts for Danish VAT on its VAT return, rather than the foreign supplier charging Danish VAT.

For example, if a consultancy based abroad provides consulting services to a VAT‑registered company in Denmark, the Danish client will commonly apply the reverse charge. In that case, the foreign consultancy typically does not need Danish VAT registration for that transaction alone. The invoice must clearly indicate that the reverse charge rules apply, often with wording such as “Reverse charge – VAT to be accounted for by the customer.”

However, reverse charge does not automatically apply to all services. Services related to immovable property (such as property management, construction work, or certain real estate services) may be taxed where the property is located, and different rules might require the foreign supplier to register and charge Danish VAT.

Special Cases: Construction, Installation, and Events

Certain activities are treated specifically under Danish VAT rules:

Construction and installation works in Denmark often fall under local VAT rules because they relate to immovable property. If a foreign business undertakes such works for non‑taxable customers (for instance, private individuals) or where reverse charge does not apply, VAT registration in Denmark is likely to be required.

Installation or assembly of machinery or equipment in Denmark that is supplied from abroad may, in some cases, make the place of supply Denmark, triggering registration.

Organizing events, trade fairs, exhibitions, training seminars, and similar activities in Denmark can create VAT obligations, particularly where admission fees are charged to participants. Admission to cultural, educational, or recreational events is often taxed where the event takes place, meaning Denmark in this case.

Foreign companies planning such projects should assess VAT obligations well in advance, as registration may be needed before the event or project commences.

How to Register for VAT in Denmark as a Foreigner

If, based on your activities, you determine that Danish VAT registration is required, you must register with the Danish Business Authority (Erhvervsstyrelsen) and/or the Danish tax authority (Skattestyrelsen). The procedure differs depending on whether you are an EU‑established or non‑EU business.

Typically, you will need to provide:

Company identification details (name, address, registration number in your home country)

Information on the nature of your business and the expected activity in Denmark

Estimated turnover in Denmark

Details of any Danish fixed establishment (if applicable)

In some cases, non‑EU business may be required to appoint a fiscal representative in Denmark, who is jointly liable for VAT. Although the rules on mandatory fiscal representation have been relaxed in many EU countries, they may still apply in specific circumstances, particularly for high‑risk activities or non‑compliant traders.

Once registered, you receive a Danish VAT number (CVR/Momsnummer). You must then charge Danish VAT where appropriate, issue VAT‑compliant invoices, keep proper records, and file periodic VAT returns. The frequency of returns (monthly, quarterly, or half‑yearly) is usually linked to turnover thresholds and the nature of your business.

Ongoing Compliance, Reporting and Record‑Keeping

After registration, VAT compliance becomes a recurring responsibility. You must:

Charge the correct Danish VAT rate on taxable supplies for which you are liable

File VAT returns by the deadlines set by Skattestyrelsen

Pay any VAT due in Danish kroner within the payment deadline

Maintain accurate and complete records of sales, purchases, and VAT calculations for the legally required retention period

Foreign companies should also monitor changes in Danish and EU VAT law, as rules around e‑commerce, digital services, and cross‑border transactions can evolve. Failure to comply can result in administrative fines, interest on late payments, and, in more serious cases, audits and assessments of under‑declared VAT.

Assessing Your Situation and Planning Ahead

Determining whether you must register for VAT in Denmark as a foreigner depends on several interlocking factors: the type of goods or services, the profile of your customers, where supplies are deemed to take place, whether reverse charge applies, and whether you sell via OSS/IOSS or directly. Often, companies discover their obligations only after an audit or after entering into a contract that clearly requires Danish VAT, which can create retroactive liabilities.

A careful review of your business model, supply chains, and customer base in light of Danish rules can prevent unpleasant surprises. For many foreign businesses, especially those engaged in cross‑border e‑commerce, digital services, or construction‑related projects, early planning and targeted advice help ensure that VAT registration in Denmark, if required, is done on time and managed efficiently.