Denmark: VAT corrections and errors subject to 30% interest surcharge

Statistics from the Ministry of Taxation indicate that 61% of companies had errors in their VAT declarations for 2018.

Subject to 30% interest surcharge

Legislation introducing an interest surcharge for “tax corrections” relating to value added tax (VAT) and certain other taxes was enacted 15 June 2022. Read TaxNewsFlash

The law authorizes the Danish tax agency to assess an interest surcharge with regard to errors and corrections of VAT and other taxes. Concerning VAT corrections, an interest surcharge of approximately 30% could apply to corrections relating to the oldest period (that is, 36 months). Accordingly, for companies with errors in their VAT reporting, such interest assessments could be a significant cost.

Statistics from the Ministry of Taxation indicate that 61% of companies had errors in their VAT declarations for 2018. 

KPMG observation

Potentially affected taxpayers need to consider conducting a thorough review of their VAT and tax reporting to determine their exposure to an interest surcharge assessment. There may be an opportunity for companies to make corrections without incurring an interest surcharge.

For more information, contact a KPMG tax professional in Denmark:

Kim Pedersen |

Rasmus Bojsen |


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