Statutory VAT accounts Denmark

Statutory VAT Accounts

The accounting of a Danish VAT-registered company must include the following special VAT accounts, according to the VAT Order § 74, when the company trades with foreign countries:

• Account for sales VAT. This account is used to post the VAT related to the company's taxable sales/deliveries, including the "withdrawal" of goods and services (reverse charge if services are provided by influencers or for private or other VAT-exempt activities in Denmark), as well as the refund of VAT in case of bad debts or adjustment obligations/rights for Capital Goods.
  
  
• Account for VAT on purchases of goods from abroad ("acquisition VAT"). This account is used to post the self-assessed VAT on goods acquired from both EU and non-EU countries. As a general rule, "acquisition VAT" should be calculated upon receipt of VAT-exempt invoices for goods from abroad, unless it falls under the second-hand goods scheme.
  
  
• Account for VAT on purchases of services from abroad ("acquisition VAT on services"). This account is used to post the self-assessed VAT on purchases of services from both EU and non-EU countries. As a general rule, "acquisition VAT" should be calculated upon receipt of VAT-exempt invoices for services from abroad unless it is a genuine VAT-exempt service (corresponding to Section 13 of the VAT Act), such as certain financial services, etc.
  
  
• Account for purchase VAT. This account is used to post the VAT on purchases, etc., of goods and services for the use of the company, to the extent that VAT on these purchases can be deducted according to the general rules. The self-assessed "acquisition VAT" is also deducted in this account if the purchased goods or services are used for taxable purposes.
  
  
• Account for the value of EU purchases of goods (Section A - goods). This account is used to record (debit) the purchase price only for goods purchased without foreign VAT in other EU countries.
  
  
• Account for the value of EU purchases of services (Section A - services). This account is used to record (debit) the purchase price only for services purchased without foreign VAT in other EU countries.
  
  
• Account for the value of EU sales of goods (Section B - goods). This account is used to record (credit) the selling price for goods sold without Danish VAT to VAT-registered customers in other EU countries.
  
  
• Account for the value of EU sales of services (Section B - services). This account is used to record (credit) the selling price for services sold without Danish VAT to VAT-registered customers in other EU countries.
  
  
• Account for the value of exports of goods and services to third countries (Section C). This account is used to post (credit) the selling price for all other sales to foreign countries without Danish VAT, except for EU sales of goods and services.
  
  
• Companies that have both taxable and VAT-exempt (domestic in Denmark) turnover are also required to have an account for Capital Goods, which shows the VAT adjustments for fixed assets and expenses related to real estate, etc., according to the VAT Order § 82, paragraph 3.

It must be possible to reconcile the above accounts with the VAT return.