Denmark: New automatic check of reported VAT figures
An automatic check of figures launched in order to improve its ability to audit information in VAT declarations
New automatic check of reported VAT figures
The tax authority on 19 January 2023 launched an automatic check of the figures reported in boxes A and B on value added tax (VAT) returns against the figures reported in "EU sales without VAT," in order to improve its ability to audit information in VAT declarations.
EU sales without VAT, which are reported in box B
An EU sale must be reported correctly on the tax authority's website under "EU sales without VAT" on TastSelv Erhverv and in box B on the VAT return. Companies that have differences between what they report on the VAT declaration and what they report as "EU sales without VAT" in the VAT Information Exchange System (VIES) system will now be contacted automatically by the tax authority with a message to correct their reports. If a report is made incorrectly or is incomplete, the tax authority will in principle be able to charge Danish VAT, regardless of whether the VIES validation and transport documentation are in place for the sale in question.
EU purchases, which are reported in box A
When a Danish company buys goods or services abroad, Danish VAT generally must be settled on the purchase, and the purchase must be reported in box A on the VAT return. Companies' reporting in box A is currently compared with suppliers' reporting to the VIES system when a company's VAT return is taken for control, but now the comparison will be done automatically and companies that have differences will be contacted automatically by the tax authority with a message to correct their reports.
Read a February 2023 report (Danish) prepared by the KPMG member firm in Denmark
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