Moms — Danish VAT at single rate 25%
Denmark stands out with one of the simplest VAT regimes in Europe: a single rate of 25% since 1992, with no reduced rates. This singularity — shared only with Bulgaria (single 20% rate) and Estonia (single 22% rate since 2024) — eliminates the complexity of differentiated invoicing but maximises fiscal transparency.
The single 25% rate — European specificity
Denmark has applied a single VAT rate since 1992, making it one of the only EU countries that does not practice product differentiation. This policy is justified by:
- Administrative simplicity — no debate on product classification (chocolate vs biscuit, restaurant vs takeaway).
- Maximised tax revenues — 25% is the highest standard rate in Europe (tied with Sweden, Norway outside EU, Croatia), generating ~22% of Danish State revenues.
- Social choice: compensated by other targeted transfers (børnepenge child allowances, free education, universal healthcare).
2025 European comparison (standard rate):
- Hungary 27% — highest EU (but with several reduced rates 18/5%)
- Croatia / Sweden / Denmark 25%
- Finland 25.5%
- Poland / Portugal 23%
- Italy / Belgium / Spain / France 22% / 21% / 21% / 20%
- Germany 19%
- Luxembourg 17% — the lowest
SME franchise — 50,000 DKK threshold
Article 48 of Momsloven provides a franchise for very small businesses and self-employed:
- Annual turnover threshold: 50,000 DKK (~EUR 6,700 end-2025).
- No option: the franchise is by right as soon as the threshold is not exceeded.
- No VAT collected but also no VAT deductible.
- Mandatory mention: "Ikke momspligtig — § 48" on the invoice (mechanically included in OIOUBL with TaxExemptionReason).
- Threshold effect: if the crossing is occasional (< 50% above), Skatteforvaltningen tolerates without retroactive assessment.
Margin regime — second-hand, art, antiques
Momsloven §§ 70-71 (second-hand, used cars) and § 30 (art, antiques, collection) establish a margin regime: VAT is calculated only on the difference between purchase and resale price, not on the entire price:
- § 70 — Second-hand goods: applied by junk dealers, thrift shops, antique dealers, resale platforms (DBA.dk, Tradono).
- § 71 — Used vehicles: applied by dealers (Volkswagen Danmark Brugte, Bilbasen, OK Forhandler) — special provision to manage VAT gaps on intra-EU imported vehicles.
- § 30 — Art, collectibles, antiques: effective 5% rate on margins (Galerie Susanne Ottesen, Bruun-Rasmussen Auctions galleries).
Reverse charge — omvendt betalingspligt § 46
Article 46 of Momsloven imposes reverse charge (the recipient declares and deducts VAT, the issuer invoices excluding VAT) in several cases:
- Construction and public works (B2B subcontracting)
- Mobile phones and tablets (> 50,000 DKK per transaction)
- Laptops and processors (> 50,000 DKK)
- Investment gold
- Waste and recyclable materials
- Gas and electricity (B2B trading)
- Intra-EU acquisitions (classical EU reverse charge mechanism)
- Imports of services outside EU by a Danish taxable person
Mandatory mention on the invoice: "Omvendt betalingspligt — Momsloven § 46". In OIOUBL, coded with TaxCategory ID "AE" and TaxExemptionReason.
OSS / IOSS — EU e-commerce VAT
Denmark transposed the EU VAT e-commerce package (Directive 2017/2455) on 1 July 2021:
- Union OSS (Mini One-Stop-Shop extended): single quarterly return for intra-EU B2C sales. Cumulative threshold of EUR 10,000 before OSS obligation.
- Non-Union OSS: for non-EU vendors providing electronic services to EU consumers.
- IOSS: for the import of small parcels (< EUR 150) from third countries, elimination of the previous EUR 22 franchise.
- Skatteforvaltningen platform: electronic returns via TastSelv Erhverv (skat.dk).
Moms codes in OIOUBL
UNCL 5305 codes used in OIOUBL 3.0 to distinguish Danish VAT regimes:
- S — Standard rate (25% in DK)
- Z — Zero rated (newspapers, public transport)
- E — Exempt (medical, education, financial — no deduction)
- K — Intra-community supply (exempt § 34)
- G — Free export (outside EU, exempt § 34)
- AE — Reverse charge (omvendt betalingspligt § 46)
- O — Outside scope (out-of-scope territory)
Concrete examples:
<!-- Standard 25% TaxCategory -->
<cac:TaxCategory>
<cbc:ID schemeID="UNCL5305">S</cbc:ID>
<cbc:Percent>25</cbc:Percent>
<cac:TaxScheme>
<cbc:ID>VAT</cbc:ID>
</cac:TaxScheme>
</cac:TaxCategory>
<!-- Reverse charge for construction / waste / mobile / IT -->
<cac:TaxCategory>
<cbc:ID schemeID="UNCL5305">AE</cbc:ID>
<cbc:Percent>0</cbc:Percent>
<cbc:TaxExemptionReason>Reverse charge — Momsloven § 46</cbc:TaxExemptionReason>
<cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>
<!-- Intra-EU B2B sale (exempt supply) -->
<cac:TaxCategory>
<cbc:ID schemeID="UNCL5305">K</cbc:ID>
<cbc:Percent>0</cbc:Percent>
<cbc:TaxExemptionReason>VAT exempt for EEA intra-community supply</cbc:TaxExemptionReason>
<cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>
<!-- Margin scheme (second-hand, § 70) -->
<cac:TaxCategory>
<cbc:ID schemeID="UNCL5305">E</cbc:ID>
<cbc:Percent>0</cbc:Percent>
<cbc:TaxExemptionReason>Special arrangement for second-hand goods (Momsloven § 70)</cbc:TaxExemptionReason>
<cac:TaxScheme><cbc:ID>VAT</cbc:ID></cac:TaxScheme>
</cac:TaxCategory>