Bridge in Denmark

5 new insights regarding VAT refunds in Denmark

[EN] Every year VAT rates get changed, legislation amended and new administrative rules implemented. Even though, the new electronic filing procedure for the VAT refund has facilitated the life of EU companies, it is still very important to keep up to date with the specific rules of the member state of refunds because the claims will still be assessed and validated by the authorities abroad following domestic rules and legislation.

Therefore, we would like to bring to your attention some recent insights shared by the Danish Tax Administration.

1. Hotel & restaurant expenses
Good news! As of 1 of January 2015 the deduction rate for hotel accommodation has been increased to 100%. The deduction rate for restaurant expenses remains, however, unchanged at a low 25% only. No refund is granted for meals to company owners and employees unless the food is served as part of restaurant services incurred for business purposes.

2. Bank details
The Danish tax administration will do refunds in Danish kroner (DKK). You should make sure that your bank account is able to receive Danish kroner to avoid any delay in your refund.

3. Supplier number
Regarding the Danish supplier number it is important to know that you do not need to add the prefix DK (country code) to this number. All Danish invoices must be stated in the application. This also applies for simplified invoices, such as sales tickets and bills for not more than 3,000 DKK.

4. Changes in VAT refund application
In case you have to change your application which was already submitted to the administration via your country portal, please make sure that any changes to this application need to be made within the deadline set for the application to which the change relates. Concerning the VAT refund claims of 2014 this deadline is in general 30 September 2015. Please note that deadlines and procedures for claims of non-EU businesses differ.

If you have your claims assigned to a VAT agent, please make sure that the authorized representative’s email address is not stated in the field for the applicant’s email address. This may cause problems for your claim and makes communication between you and the administration more difficult.

5. Claim periods
If the application concerns a period of less than a calendar year, but at least 3 months, the tax for which a refund is sought must amount to at least 3,000 DKK. If the application concerns a calendar year, or the rest of a calendar year, the requested tax refund must amount to at least 400 DKK.

Source: (01.04.2015)


About TALA Consult

TALA Consult is a management consultancy company specializing in financial risk management and cost optimization. In particular, we focus on risks inherent to the supply chain. Instead of mere cost killing, our approach combines cost saving and risk optimization levers to deliver true savings as well as to provide a clear and sustainable return on investment to our customers.

Our consulting advice varies from quick recommendations for your on-the-spot needs to sustainable and holistic optimization of your processes and organization. When needed, we provide efficient and cost effective outsourcing solutions.

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