VAT liability
If you run a business in EU – and therefore in Denmark – you may be VAT/moms liable.
VAT is to be paid if you offer goods or services, you receive payment, your customer or the use is in EU and the goods or services are not subject to at VAT exemption.
For our clients VAT usually kicks in if you offer consulting services, classes and courses, goods or if you rent out property for business use (including AirBnB wich is considered hotel services). If this is the case your VAT liability appears when your yearly revenue is DKK 50.000 or more.
If your business is VAT liable you may also deduct the VAT on your purchases if they are a part of delivering the VAT-relevant services or goods.
PrivatRevision can help you with identifying if and what part of your business that may be VAT liable, and we can assist you with calculating and reporting the VAT.
But VAT is not always simple. In some cases it is important to distinguish between the VAT liable business and the not VAT liable transactions that may appear. A typical example is the consulting business that have made some investments in property. Even though some property transactions may be VAT liable they are only VAT liable if your business is property. This way a VAT-liable business may have VAT liable income that is however not subject to VAT taxation.
Another often seen example is when private persons or property investors sell building plots or property meant for this use. Sale of plots and similar is liable to VAT. But in many cases VAT may be avoided or reduced.
PrivatRevision can offer you VAT counselling – from the more easy parts regarding if your enterprise may be VAT liable and to more complex cases i.e. if part of your gains and earnings are subject to VAT or not.