Deduction of VAT in Denmark 

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.
However, on certain expenses VAT is only partly deductible or not deductible at all. The table shows the right to deduction of VAT for a number of expenses. A possible pro-rata must be taken in to consideration.
Moreover, generally it is only possible to deduct VAT on expenses where VAT has been correctly levied.

 0%

 25%

1/3

50% 

100% 

Expenses in relation to accommodation and meals etc.  

 Hotel accommodation        

 Meals in connection with accommodation. e.g. breakfast, separate invoiced  

X

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

 Food for the company's owners and employees

X

       
 Free coffee and tea etc. for employees

       
 Restaurant for business purposes (both food and drinks)*  

     

Cars and bridge tolls

 Toll, Øresund bridge        

 Toll, Great Belt bridge (Storebælt), passenger cars

 X

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

 Passenger cars, purchase and operation expenses

       
 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, passenger cars (leased or owned by the company)

       
 Vans ≤ 3 tons, purchase, no private usage        

 Vans ≤ 3 tons, purchase, also used for private purposes  

       
 Vans ≤ 3 tons, operation expenses        

 Vans ≤ 3 tons, leasing, also used for private purposes      

X

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

  Trucks > 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 private purposes

Determined by an estimate between business purposes and private purposes                  

Landline only used for business purposes        

Landline installed at the premises of the employee, also used for private purposes, invoiced to the compmany       

X

 
 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/Promotion

 Advertising expenses        

 Football tickets or similar entertainment, for selected customers

       
 Flowers for decoration        

 Gifts, wine, flowers etc. to business relations

       
 Promotional items with the logo/company name (<100 DKK)        

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

       
 Sample/Demo of products regardless of value        

 Sponsorship expenses, billboards and other advertising        

 Meals  

     
 In house meals in connection with meetings        


* Includes i.a. Christmas parties, project days for employees, internal meetings, meetings with business partners. ** The Company must have VAT-abele activities of more than DKK 50,000 on a yearly basis.

Contact Us

Kirsten Christensen Nielsen

Kirsten Christensen Nielsen

Director

+45 5374 7036

Janni Jørgensen

Janni Jørgensen

Senior Consultant

+45 5374 7051

VAT deductability

Please find here the overview as download

in English - Vat deductibility.pdf

and Danish - Momsfradrag i Danmark.pdf

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