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Home page // No more interest-free post-declaration of VAT and taxes
Companies should not receive interest benefits from incorrect declarations. The Danish Parliament has decided that ...
June 3, 2022

No more interest-free post-declaration of VAT and taxes

Companies should not receive interest benefits from incorrect declarations. The Danish Parliament has now passed a bill that adds interest to VAT and tax returns. This can be expensive.

With the legislative amendment, the Minister of Taxation is doing away with the previous practice where companies do not pay interest when they remit or correct VAT and taxes in the Tax Agency's favor.

Until now, interest has only accrued 14 days after a payment claim from the Tax Agency. With the adoption of the new bill, increased VAT and taxes will always accrue interest from the last timely declaration and payment date.

This is where the bill on supplementary declaration will have an impact

The reason for changing the law is that it is unfair for companies to gain an interest advantage from an incorrect declaration.

The first part of the proposal has entered into force on June 15, 2022. That part covers the following situations:

  • Where businesses file their first return after VAT registration late but before a provisional determination has been made
  • Where businesses file their first return after a correct VAT registration but change the return to a higher amount after the deadline
  • Where companies get registered retroactively and therefore file their first return late.

The second part of the proposal will affect control cases, but is not yet defined.

Seek clarification from Skat

It can be costly for a business to have late returns when interest is already accrued from the return and payment deadline.

Inforevision therefore encourages companies to seek clarification in the form of a binding answer or similar from Skat if practice is unclear, or if there is doubt about the VAT or tax treatment of questions and disputes in your company.

More information

You can see the bill on the Danish Parliament's website.

If you need advice or assistance in connection with tax, VAT and duty reporting, you are welcome to contact inforevision's tax department. You can read more about us here. 

Flemming Saabye
Head of the tax department
T 39 53 50 38
fsa@inforevision.dk

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