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Denmark: Amendment providing flexibility in VAT deductions

Amendment to the VAT executive order effective from July 1, 2025

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May 27, 2025

The Danish Ministry of Taxation published an amendment to the value added tax (VAT) executive order effective from July 1, 2025. The amendment addresses the accrual of VAT deductions, allowing deductions to be made up to six months after the supplier's invoice date in the current VAT return submission. This change eliminates the need to reverse VAT deductions to the return where the invoice is dated.

The amendment stipulates that input VAT deductions must adhere to consistent principles across all supplier invoices. For example, if deductions are made post-purchase approval, this must be uniformly applied to all VAT deductions/input VAT vouchers.

The amendment may not resolve the need for accrual of deductions for energy taxes, and there may also be an issue regarding the accrual of VAT deductions for purchases from outside Denmark (reverse charge).聽

Read a May 2025 report prepared by the 乐鱼(Leyu)体育官网 member firm in Denmark

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