Selling goods and services
When you trade internationally, the VAT rules depend on whether you trade in goods or services. When you export goods out of the EU (to third countries), you do not have to charge Danish VAT on the sale. However, there are a few exceptions to this rule. You have to document that the conditions for any sales exempt from VAT have been met.
The same rules apply when you sell goods to private individuals or businesses outside the EU.
You need to register your business at indberet.virk.dk to sell goods to private individuals or businesses outside the EU.
When you do so, youu will be assigned an Economic Operators Registration and Identification number (EORI) is a register of all EU businesses trading with non-EU countries.
You have to report your sales in the Declaration Management System (DMS) Export (formerly E-export). Most businesses choose to do so via a shipping agent.
You have to be able to document that the goods have been exported out of the EU in the form of, for example:
- an export statement with an exit summary declaration in DMS Export (formerly e-Export)
- a written order
- correspondance with the buyer
See our video: Sale of goods to non-EU countries - how do I manage the VAT issue?
If a Danish business sells services to non-EU business, Danis VAT is normally not be charged.
You need to document that the buyer is a registered business.
You need to check the customer’s data and identity. It is possible to find this information on the Internet. Please save a print as documentation.
If in doubt whether the customer is a business, ask the customer for proof, such as:
- a certificate issued by the tax authorities in the buyer’s homeland documenting that the customer has financial activities or
- the customer’s VAT number or similar number used to identify businesses in the buyer’s homeland.
If you are not able to establish whether the buyer is a business, you should treat the sale as a sale to a private individual outside the EU.
For certain services, you should always charge VAT as a Danish business even if the buyer is a non-EU resident. These include:
- Services related to property located in Denmark (such as construction services).
- Passenger transport taking place in Denmark (coach services).
- Access to events relating to culture, art, sports, science, education, entertainment, etc. (such as fairs, exhibitions, seminars and courses) taking place in Denmark.
- Restaurant and catering services carried out in Denmark.
- Short-term hiring out of means of transport provided to a customer in Denmark.
Charge VAT if the buyer will be using the service in Denamrk
For certain services, you should always charge VAT as a Danish business - even if the buyer is a non-EU resident - if the buyer uses the service in Denmark. These services include:
- Sale of rights
- Advertising
- Consultancy services
- Negative obligation (such as non-competition clauses)
- Banking, financing and insurance services (not including hiring of boxes)
- Hiring out of labour
- Hiring out of movable tangible property
- Transport and transmission of gas, electricity, heat and cold
If the services concern the buyer’s business, the buyer can apply to have the VAT refunded.
For instructions on how to claim a refund of VAT paid abroad, please see Refund of Danish VAT to non-Danish businesses domiciled outside Denmark.
When you sell goods and services to countries outside Denmark, you must keep special accounts in your business accounts.
You could name them:
- Sale of goods to non-EU countries
- Sale of services to non-EU countries
You must report the value of the sales exempt from VAT of goods and services to countries outside the EU in box C of the VAT return.
For further legal information in Danish see our legal guide .