Refund of Danish VAT to foreign businesses domiciled outside the EU
Businesses domiciled in countries outside the EU can obtain refund of VAT (25%) on goods and services purchased in Denmark. See the scope of the refund and who to contact if you apply for a refund after crossing the Oresund Bridge.
Within the retail trade, VAT is included in the total purchase price and therefore it amounts to 20% hereof. Foreign businesses need to apply for a refund of VAT. The amount is not refunded automatically.
Who is entitled to VAT refunds?
A business can, on certain conditions, obtain refund of Danish VAT paid in Denmark, when the business is domiciled in a country outside the EU. The refund includes goods and services for the commercial use of the business.
The business can obtain VAT refunds if the following four conditions are met:
The business is not domiciled or has a place of business or the like in Denmark
The goods or services are bought for commercial use
The business would be subject to a registration tax in accordance with the Danish VAT Act (Momsloven) if the business was situated in Denmark
During the period which the application concerns, the applicant has not conducted business which is subject to registration tax except for:
delivery of services (including transport services and related services), if these services are directly related to the export of goods to locations outside the EU
delivery of services (including transport services and related services), if these services are directly related to the import of goods which are included by a scheme according to which complete VAT exemption is granted on imports. This also applies to services in connection with goods held in bond in a tax and customs warehouse.
Please see our Danish-language legal guide for further legal information.
Scope of refund
VAT on goods and services can be refunded to the same extent as Danish businesses can deduct VAT payable on purchases of a similar nature. This means that you can obtain a full refund on most of your purchases for commercial use. 25% of the full VAT on restaurant visits is refundable and 100% of the VAT on overnight stays at hotels is refundable.
The refund is limited to a special deduction which must be stated on the invoice.
On a number of purchases, VAT is never refunded. This applies to purchases concerning:
food for the owner and employees of the business
acquisition and ongoing maintenance of accommodation for the owner and employees of the business
acquisition and maintenance of, for example, vacation premises, holiday cottages for the employees of the business
entertainment, representation and presents
acquisition, repair and operation of motor vehicles designed for transportation of no more than nine persons
payment in kind to the employees of the business
When you as a foreign business purchase goods/services in Denmark with Danish VAT, a VAT refund is not obtainable when the goods/services could be exempt of VAT in accordance with the Danish VAT Act.
Contact the Danish Tax Agency (Skattestyrelsen) for more information about this.
Please see our Danish-language legal guide for further legal information.
The Oresund Bridge
In connection with trips across the Oresund Bridge, foreign businesses may apply for a refund of VAT on the bridge toll from the Swedish tax authorities.
Businesses from Albania, Bosnia and Hercegovina, the Faroe Islands, Greenland, Iceland, Macedonia, Montenegro, Serbia and Turkey should contact:
Skatteverket Utlandsenheten 205-31 Malmø Sweden E-mail: skattekontor1@malmo.se
Businesses from other countries are to contact:
Skatteverket Utlandsenheten 106 61 Stockholm Sweden E-mail: stockholm@skatteverket.se
Refund of VAT on the bridge toll can therefore not be obtained from the Danish Tax Agency (Skattestyrelsen).
