VAT on Digital Services in Denmark
If you sell SaaS, digital downloads, apps, e-books, or any electronically supplied service to customers in Denmark, EU VAT rules apply. The rate you charge depends on who your customer is and where your business is based.
Quick Reference
| Scenario | VAT Rate | Who Pays |
|---|---|---|
| B2C to Denmark consumer | 25% | You charge & remit |
| B2B to Denmark business | 0% (reverse charge) | Customer self-assesses |
| Domestic sale within Denmark | 25% | You charge & remit |
B2C Sales — Selling to Consumers in Denmark
When selling digital services to individual consumers (B2C) in Denmark, you must charge VAT at 25%. The key question is whether you need to use the One-Stop Shop (OSS) scheme:
Below €10,000/year in EU cross-border B2C sales: You can charge your home country's VAT rate instead of 25%. This threshold applies to your combined B2C sales across ALL EU countries, not just Denmark.
Above €10,000/year: You must charge 25% (Denmark's rate). Register for the OSS scheme in your home EU country to file a single quarterly return covering all EU countries.
B2B Sales — Reverse Charge to Denmark Businesses
For B2B sales to VAT-registered businesses in Denmark, the reverse charge mechanism applies. You invoice at 0% VAT and your customer accounts for the VAT themselves. You must:
1. Verify your customer's VAT number using the EU VIES system
2. Include both VAT numbers on the invoice
3. Add the wording: "Reverse charge — VAT to be accounted for by the recipient under Article 196 of Council Directive 2006/112/EC"
Non-EU Sellers Selling to Denmark
If your business is outside the EU (e.g., US, UK, or other non-EU country) and you sell B2C digital services to consumers in Denmark, you must register for the Non-Union OSS scheme in any EU member state. You'll charge 25% VAT on sales to Denmark consumers and file quarterly returns through your chosen EU country.
For B2B sales from outside the EU, the reverse charge still applies — your Denmark business customer handles the VAT.
Invoice Requirements for Denmark
Your invoice to a Denmark customer must include: your business name and address, your VAT number (or OSS number), the customer's details (and VAT number for B2B), a clear description of services, the VAT rate applied (25% for B2C, 0% with reverse charge note for B2B), and the total amount including VAT.
Use our free invoice generator to create compliant invoices with the correct legal wording automatically.