Deduction of VAT in Denmark 

The general rule is that it is possible to deduct VAT on expenses related to the company's VAT-able activities in full.¹ However, on certain expenses VAT is only partly deductible or not deductible at all. This scheme illustrates the right to deduction of VAT for expenses that companies normally have.
Moreover, generally it is only possible to deduct VAT on expenses where VAT has been correctly levied.
  0%  25%  33,3%  50%  100% 

Expenses in relation to accommodation and meals etc.            

 Accommodation        

X

Meals in connection with accommodation, e.g. breakfast   

X

     
Meals in connection with meetings, courses and similar held in the company's premises         

X

Food for company's ownders and employees 

X

       
Free coffee and tea etc. for employees 

X

       
Restaurant for business purposes (both food and drinks)*   

X

     

Cars and bridge tolls       

Toll, Øresund bridge         

Toll, Great Belt bridge (Storebælt), passenger cars 

       
Toll, Great Belt bridge (Storebælt), vans/trucks (vehicles with yellow licnese plates)**         

Passengers cars, purchase and operation expenses 

 X

       
Passenger cars, leasing fee (for leasing more than 6 months and 10% for commercial purposes) 

Deductible in accordance with the specific VAT amount stated by the leasing Company on the invoice         

Parking fee, passengers cars (leased or owned by Company) 

 X

       
Vans less than 3 tons, purchase, no private usage          

VAns less than 2 tons, purchase, also used for private purposes 

       
Vans less than 3 tons, operattion expenses         

Vans less than 3 tons, leasing     

   
Trucks more than 3 tons, no private usage (purchase, operating expenses and leasing)         

Trucks more than 3 tons, also used for private purposes (purchase, operating expenses and leasing)  

Determined by an estimate between business purposes and private purposes         

Telephone and internet (purchase and usage)           

Mobile phones only used for business purposes         
Mobile phones also used for business purposes  

Determined by an estimate between business purposes and private purposes         

Telephones, landline only used for business purposes         
Telephones, landline only used for private purposes          
Internet broadband 

Determined by an estimate between business purposes and private purposes         

Ipad only used for business purposes         
Ipad also used for private purposes 

Determined by an estimate between business purposes and private purposes         

Representation           

Advertising expenses         

Football tickets or similar, for selected customers 

       
Flowers for decoration         

Gifts, wine, flowers etc. to business relations 

       
Promotional itmes with the logo/Company name (<100DKK)         

Promotional items with/without logo/Company name (>100DKK) 

       
Sample/demo of products to customers regardless of value         

X

Sample/demo products to employees regardless of value         

X*** 

Sponsorship expenses, billboards and other advertising       

Sponsoship expenses, meals   

 X

   
Sponsorship expenses, in house meals         



¹ A possible pro-rata must be taken in to consideration
* Includes i.a. Christmas parties, project days for employees, internal meetings, meetings with business partners.
** The company must have VAT-able activities for more than DKK 50,000 on a yearly basis.
*** When the employee gets the sample/demo product for free, the company has to pay VAT to the Danish tax authorities corresponding. The VAT calculated must be based on the market value of the product.

Contact Us

Kirsten Christensen Nielsen

Kirsten Christensen Nielsen

Director

+45 5374 7036

Linda-Sophia Danielsen

Linda-Sophia Danielsen

Senior Manager

+45 5374 7049

Janni Jørgensen

Janni Jørgensen

Senior Consultant

+45 5374 7051

VAT deductibility

Please find here the news as download - Vat deductibility.pdf

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