Denmark: Proposed interest charge on VAT, tax corrections from 1 July 2023
A consultation proposal on charging interest on VAT and tax corrections from 1 July 2023.
A consultation proposal on charging interest on VAT and tax corrections from 1 July 2023.
The Danish tax agency issued a consultation proposal on charging interest (at an annual rate of 8.4%) on value added tax (VAT) and tax corrections from 1 July 2023.
The tax agency has increased its focus on VAT compliance, with a particular emphasis on:
- Transport documentation for VAT-free EU sales
- Canteen tax
- Discretionary VAT deduction for multimedia with private use
- VAT deduction for costs for cars, including parking spaces
KPMG observation
It is not yet known whether the tax agency can technically collect interest via the tax account from 1 July 2023, but tax professionals recommend that companies that have potential corrections in the area of VAT and taxes (including payroll tax) review and make the necessary corrections before 1 July 2023.
Read a May 2023 report (Danish) prepared by the KPMG member firm in Denmark
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