Customs matters, including import VAT
Companies importing goods into Denmark and the EU from countries outside the EU must declare the goods to the Tax Administration (Danish Customs Agency).
In order to declare and interpret the goods, the company must be registered as an importer and/or exporter with the Tax Administration prior to commencing these import or export activities.
Registration and security - Importer
Before you import goods from countries outside the EU (including Greenland and the Faroe Islands), your company must register as an importer with the Danish Business Authority. At the same time, you must decide how you will provide security for customs duties.
When you register your business, it is automatically assigned an EORI number, which is your company's CVR number preceded by DK.
When you register as an importer, you need to decide how you want to secure the customs duties your goods may be subject to and when you want to pay the amount of duty. There are three options:
- The so-called "SKATs Sikkerhedsstillelsesordning"
- Other security
- Cash payment of customs duties (5-day settlement)
Declaration, item code and payment
When you import commercially, you must declare which goods you are importing. When your goods arrive in Denmark, you must declare your customs information electronically in the import system. You can also choose to have a freight forwarder or carrier do it for you.
When you import, the goods must be declared for customs clearance. Typically, the freight forwarder/carrier handles this work, but importers can also choose to do it themselves. If you choose to do it yourself, you must be registered as an importer and set up as a user in the Danish Customs Agency's customs system so you can submit your customs information electronically to the authorities.
Registration - exporter
Exporting goods means that an EU product is taken completely out of the EU customs territory. When a company in Denmark sends a product to a customer in another EU country, it is not an export according to customs rules, but a delivery within the EU.
Before you export goods to countries outside the EU (including Greenland and the Faroe Islands), your company must register as an exporter with the Danish Business Authority. When you register your company, it is automatically assigned an EORI number, which is your company's CVR number with DK in front.
When supplying (exporting) to private individuals in another EU country, there are special rules for calculating VAT. The formalities for calculating VAT when supplying to an EU country or exporting out of the EU are very different and it is important to know the rules and procedures involved.
Intrastat (database on Denmark's trade in goods with foreign countries)
Intrastat is a database at Statistics Denmark that collects statistics on Denmark's trade in goods with other EU countries.
You must report information to Intrastat if your company's annual EU imports currently amount to at least DKK 6.0 million or annual EU exports currently amount to at least DKK 4.5 million.
If your trade in goods with other EU countries exceeds these minimum thresholds, you must therefore report to Intrastat every calendar month. Statistics Denmark automatically informs companies about when the reporting obligation begins, and companies are also informed if there are any changes in the reporting obligation.
Import VAT
Companies that import goods to Denmark must pay import VAT.
Import VAT is not collected automatically. Companies must therefore calculate, declare and pay the import VAT themselves. This is done in the "VAT on purchases abroad" section.
In most cases, VAT-registered businesses will have access to VAT deductions as the imported goods are typically used for resale. In these cases, a corresponding amount will need to be entered in the "purchase VAT" section. This means that the VAT return will end up being zero for the purchase in question.
Our assistance and advice covers, among other things:
inforevision helps to ensure correct registration and settlement of customs duties and taxes etc. and - as far as possible - to limit the payment of these. In addition, we can generally assist with the following:
- Correct registration of the company as an importer and/or exporter
- VAT and import VAT management and reporting
- Assistance with tariff lines / tariff codes etc.
- Assist with customs inquiries and various customs regimes, etc.
Is your business paying too much in customs?
We sometimes see that companies pay too much duty because the goods have been incorrectly classified or because full duty has been paid on goods that have been in or out of the EU in connection with customs warehousing or processing of the goods, etc.
Feel free to ask us if you have any doubts.
Collaborate across borders
When a company has cross-border goods transactions, customs issues can be of particular importance. There can be significant differences between countries' regulations, even within EU member states.
Through our membership of Moore Global, an international network of independent accounting firms, we have access to a wide range of specialists in most parts of the world.
In addition, we collaborate with a number of leading law firms here in Denmark and participate in a wide range of networks.
