Moms one stop shop in Denmark

"Moms One Stop Shop" is a system in place in Denmark from 1 July 2021, whereby traders who sell selected services or goods to EU buyers have the option to both declare and pay VAT.

What is worth knowing about the 'Moms One Stop Shop' system?

1. With this system, the entrepreneur can declare and pay VAT for each Member State of the European Union in one place.
2. It is a convenient solution primarily for entrepreneurs whose total annual income is greater than EUR 10,000 (below this amount, the entrepreneur is obliged to pay VAT in Denmark on revenue from B2C customers in the European Union).
3. These rules also apply to imported goods from outside the European Union, which must also be subject to VAT on the total amount even if the amount for their sale does not exceed DKK 80.
4. This system includes a programme for non-EU traders (when: the services or products do not go outside the EU, the company is based outside the EU and sells to buyers in the EU), an import scheme (when the trader sells non-EU products to customers in the EU that do not exceed a price of €150 per item) and a European Union scheme (when the services or products do not go outside the EU, the trader sells selected services or products within the EU).
5.  "Moms One Stop Shop" must be registered in Denmark in case the company's registered office is located in this country.
6. Traders who do not wish to use this scheme are required to pay VAT in all countries to which they sell services or goods.
7. To declare sales to EU customers in this system, you must personally log in using NemIDdo SKAT Erhverv, select Moms and Moms One Stop Shop, then select the period for which the entrepreneur wishes to declare sales to EU customers, followed by an indication of which countries the services or products were sold to, then indicate in Danish kroner the amount of VAT for each country, the total without VAT and the VAT percentage (for periods without sales, you must declare 0), after which you must wait for approval of the declaration and payment ID for the online banking system.
8. Traders are required to keep all data regarding B2C sales for 10 years.
9. Those who used the previous 'One Stop Moms' system will be transferred to 'One Stop Shop Moms' automatically.
10. Traders using the import system are required to provide data such as: quantity and description of goods supplied, country to which they are supplying the products, date of supply, currency and amount used to calculate VAT, subsequent adjustments to this amount, amount and percentage of VAT, total and date of payments received, if an invoice was issued, details of the invoice, transaction or order number, data on the use of services by the buyer and his place of residence, data on the place of commencement and termination of the shipment of goods, if the trader is directly involved in the supply of goods, the batch number, data on the returned goods (with the amount of VAT), and data on the place of destination. If the vendor is directly involved in the delivery of the goods, the batch number, details of the returned goods (including the VAT amount).

Businesses using a non-EU or EU program should provide the following details: currency, amount and percentage of VAT, adjustments to the VAT amount, if an invoice has been issued, details of the invoice, country to which the services or goods were sold, quantity and description of services or goods sold and date of delivery, total and date of payments received, amounts of installments received before delivery, details of goods returned (with the VAT amount, details of the place of origin and place of residence of the buyer, details of the place of origin and place of destination of the goods. The customer must provide details of the country to which the services or goods were sold, the quantity and description of the services or goods sold and the date of delivery, the sum and date of payments received, amounts of installments received before delivery, details of goods returned (including VAT), details of the buyer's use of the services and place of residence, details of where the goods began and ended.

In the case of the Moms One Stop Shop system, the company's accounting has to handle different VAT rates for different types of products in the country, and the entrepreneur should account for the different VAT rates, which depend on the place of residence of the EU buyer.