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Taxes and VAT for foreign service providers

All foreign businesses providing services or selling goods in Denmark must register for tax and VAT. If you have foreign employees, you must be aware that different rules apply depending on the length of their stay.

Your business must pay VAT if it sells goods or services in Denmark. VAT is a 25% tax added to the price of the goods and services you sell. The VAT registration must take place no later than 8 days before your business starts up activities subject to VAT in Denmark.

The VAT registration can be done in connection with the registration in:
The Register for Foreign Service Providers (RUT)

VAT Registration

Generally, if you are a self-employed business owner, you need to register your business for VAT. You register for VAT at www.virk.dk

VAT returns and deadlines

Business or employee?

When you start your own business, you will be classified into one of four categories for tax purposes: employee, fee-based employee, commercial or non-commercial business.

Checklist: foreign employees

Different rules apply when it comes to the registration of employees, depending on the length of their stay and which country they come from.

Hiring-out of labour tax

If, as a Danish business, you hire-in an employee who has an employer from another country, the employee is liable to pay tax according to the rules on international hiring-out of labour.

Is your business subject to tax in Denmark?

This guide is for businesses resident for tax purposes or established outside Denmark with business activities in Denmark. The guide lists the rules on when you and your business will have to pay taxes in Denmark.

Is your business subject to tax in Denmark?

Any questions?

Contact The Danish Tax Agency

Telephone hours:

Monday 9 - 17
Tuesday to Thursday 9 - 16
Friday 9 - 14

+45 72 22 28 81