The Danish National Tax Court confirmed that extraordinary VAT reassessment is permissible when gross negligence is proven. In a case involving a Danish airline, the court upheld the tax authorities’ findings that the company used incorrect input VAT deduction percentages, failed mandatory year‑end adjustments, and understated its liability. The decision clarifies that repeated errors and prohibited energy‑tax deductions justify extraordinary reassessment.
It confirms that extraordinary VAT reassessment is permissible when gross negligence is proven, as demonstrated in the case of the Danish airline.
Repeated filing of VAT returns with incorrect input VAT deduction percentages and failure to perform mandatory year‑end adjustments constitute gross negligence that justifies extraordinary reassessment.
The airline used incorrect input VAT deduction percentages over multiple periods, failed to perform mandatory year‑end VAT adjustments, and claimed prohibited energy‑tax deductions.
The decision confirms that energy‑tax deductions are prohibited for businesses subject to the Danish VAT Act.
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Bloomberg Tax · 3 days ago
The Danish Customs and Tax Administration issued a Tax Council Binding Answer (No. SKM2026.54.SR) on Jan. 28, 2026, clarifying VAT deduction rules for management services provided by a Danish subsidiary of an EU-established AIF manager to its group‑affiliated parent. The ruling indicates that the taxpayer cannot be confirmed to be entitled to a full VAT deduction for costs used for both taxable domestic services and financial services delivered to its nonresident parent.
VatCalc · 4 days ago
Denmark’s Ministry of Finance announced a planned cut to the VAT on basic foodstuffs in 2028, with debate over whether the reduction should apply to all food or only fruit and vegetables. The proposal would require amendments to the VAT Act and could involve either a 20% reduced rate or a targeted zero‑rate for certain categories. Implementation is expected to be delayed due to technical complexity.
VATCalc · 16 days ago
Denmark has increased its Intrastat Dispatches threshold to DKK 11.8 million effective 1 January 2026, while the Arrivals threshold remains unchanged at DKK 42 million. The change requires businesses to report additional data in the electronic Intrastat form, including goods description, commodity code, delivery terms, transport mode, destination and origin countries, weight/quantity, and invoice value. Since January 2022, Intrastat also mandates the country of origin for dispatches and the VAT ID of the recipient.
The Invoicing Hub · 19 days ago
Denmark’s Digital Bookkeeping Act entered its final rollout phase on 1 January 2026, extending mandatory certified digital bookkeeping to about 118,000 small and foreign entities with turnover above DKK 300,000. The country also cancelled the OIOUBL 3.0 e‑invoice format on 14 January 2026, with new specifications to be clarified on 24 February 2026.
TheLocal · 22 days ago
The Danish government is debating a VAT cut on food, with Prime Minister Mette Frederiksen favoring a general reduction rather than eliminating VAT on fruit and vegetables. The Moderates propose scrapping VAT on fruit and vegetables, while the Liberals have not set a specific cut amount. The government says a full cut cannot be implemented by this year's elections due to technical reasons.
NWB · about 4 hours ago
This guidance explains that German businesses can apply to extend the deadline for filing VAT returns by one month. If the extension is used, a special advance payment equal to one‑eleventh of the previous year’s advance payments must be paid, and it is credited in the December advance payment calculation. The special payment can be corrected upon application if expected VAT changes due to a rate change.
