Guidelines for VAT
Goods and services are VAT-liable at a rate of 25% in Denmark. That also means that if your congress or event is VAT-liable, you can deduct VAT on all your costs (with very few exceptions). Here’s how it works:
Just like many other European countries, an extra tax called VAT is added to goods and services in Denmark. The rate is 25%. This means that if your Danish event is VAT-liable, you can deduct VAT from your costs.
At the present time, there is no tourist tax or similar tax applicable in Denmark.
ARE DELEGATE FEES SUBJECT TO VAT?
Yes: as a rule, delegate fees are subject to Danish VAT. However, if your organisation is a non-profit and the purpose of your conference is educational or scientific, you have various opportunities to choose whether the delegate fee should be VAT liable or VAT exempted.
WHEN ARE CONFERENCES VAT LIABLE?
If the delegate fee is subject to Danish VAT, most costs are VAT deductible. Only costs on certain meals are subject to partial VAT deductibility. That means that if you hold a VAT-liable conference, almost all Danish VAT will be recoverable. To be eligible, your organisation must register for VAT in Denmark. The Danish VAT registration process can generally be completed within 8 days.
WHEN ARE CONFERENCES VAT-EXEMPT?
If the delegate fee is VAT exempted, your organisation is not entitled to VAT deduction. However, if the conference also includes sponsor fees and/or revenue from exhibitions, you are entitled to a partial VAT refund even if Danish VAT is not levied on these revenues. In these cases, you don’t usually have to register for VAT in Denmark, and your partial VAT deduction can be obtained through the VAT refund procedure.
HOW DOES A VAT REFUND WORK?
In general, the Danish VAT refund procedure is simple. But there are a few things you should be aware of:
- If you are obliged to charge Danish VAT, you must register for VAT in Denmark. You will obtain the VAT refund through your Danish VAT declaration.
- If you do not have to charge Danish VAT on your revenue, you can ask for a partial VAT refund.
- If your business is located in a Member State of the EU, the application for refund of Danish VAT must be addressed to your local VAT authorities.
- If your business is located in a country outside the EU, all refunds of Danish VAT must be claimed on Form 31.004. Information on where to send the form, including download, is available here.
Services without Danish VAT
A large number of services can be invoiced to your organisation without Danish VAT if the organisation is established outside of Denmark. However, some services may still be subject to VAT in the country of residence (reverse charge VAT).