In Denmark, a businessman, after receiving all invoices and posting them in a pre-selected system such as dinero or e-conomic, can prepare a VAT report, including both purchase and sales tax (VAT in Denmark is exempt from VAT on, among other things. Newspaper subscriptions or postage stamps are exempt, as are sales to EU companies that are VAT payers in other countries or to countries where VAT is not added), then he should log in using his VAT number and user name to his account on SKAT’s website, open a menu with his business and declare VAT. In order to receive the net amount of VAT (refund or surcharge) you need to register both the amount of this tax on purchases and on sales.
The businessman to whom the surcharge came out should pay it to the Danish tax authority within the prescribed period. In Denmark, payment identifiers begin with prefixes such as +71 or +73, followed by a long string of digits that must be entered using an online bank account. Danish businesses pay VAT monthly, quarterly or semi-annually.
[Infografika] VAT payment deadlines depend on the quarter and can be verified on SKAT’s website:
1. On June 1, pay VAT for the first quarter: January, February, March.
2. On September 1, pay VAT for the second quarter: April, May, June.
3. On December 1, pay VAT for the third quarter: July, August, September.
4. On March 1, pay VAT for the fourth quarter: October, November, December.
If a business does not have the financial means to pay all the VAT by the deadline, it will owe the tax authorities an amount that SKAT can verify through a tax account (skattekontoen), which can be set up at skat.dk.
If the entrepreneur purchased more goods with VAT than he sold, he is entitled to recover the net amount of VAT from the tax office (in which case there is a minus before the amount to be refunded). The refund will be transferred to a so-called nemkonto (nemkonto.dk), a special account assigned by the bank when setting up a company account in Denmark, within two weeks.
