How to Register a Company for VAT in Denmark and Obtain EU VAT Number
Establishing a company in Denmark and obtaining an EU VAT number is a key process for entrepreneurs who want to conduct commercial transactions within the European Union, such as launching their own online store, buying goods or services outside of Denmark, and selling them in Denmark.
Below are the detailed steps on how to register a company for VAT in Denmark and obtain an EU VAT number:
1. Establishing a Company in Denmark
a. Contact the National Business Authority (Erhvervsstyrelsen)
Firstly, contact the Danish National Business Authority (Erhvervsstyrelsen) to get information about the process of establishing a company.
b. Fill in Registration Forms
Fill out the necessary registration forms available on Erhvervsstyrelsen’s website.
Provide details such as the name of your company, address, legal form, business purpose, and personal identification documents.
c. Obtain CVR Number
After submitting the forms, you will receive a unique tax ID number (CVR-Nummer) which is essential for any company operating in Denmark.
2. Registering with VAT System in Denmark
a. Contact Local Tax Office
Contact your local tax office (Skattestyrelsen) to register your company with the Danish VAT system.
You will obtain a Danish VAT number (DK) and be registered as a VAT payer in Denmark.
b. Choose Form of Taxation
Decide whether you want to pay general value-added tax (VAT) or opt for simplified taxation for small businesses (micro-enterprises).
3. Obtaining EU VAT Number
a. Submit Application for EU VAT Number
Submit an application to your local tax office to obtain an EU VAT number.
The application will include details about your company’s activities, planned transactions within the EU, and other relevant information.
b. Obtain EU VAT Number
After a positive review of your application, you will receive an EU VAT number which is essential for commercial transactions within the European Union.
4. Using Tax Exemption Procedure
a. When Purchasing from Outside Denmark
When purchasing goods or services from another company in the EU, provide your EU VAT number as proof of being a registered VAT payer.
The supplier may exempt you from paying VAT based on your EU VAT number.
b. Documenting Transactions
Keep accurate records of all commercial transactions, including invoices and other documents that confirm the transaction.
5. Regular VAT Settlements
a. Accuracy of Settlements
Regularly settle your VAT in Denmark according to the applicable tax laws.
Remember that accuracy and timeliness are crucial for avoiding potential tax issues.
In conclusion, establishing a company in Denmark and obtaining an EU VAT number requires careful attention and understanding of local tax regulations. It is highly recommended to seek the services of a tax advisor or business registration specialist to avoid mistakes and ensure successful company registration for VAT in Denmark. Additionally, it is essential to regularly monitor changes in tax laws and adapt your business accordingly.
