Denmark: Interest on corrections of VAT and excise duties for past periods effective 1 July 2023

Added interest will apply to all corrections

Added interest will apply to all corrections

Article Posted date 16 August 2023

Legislation introducing the computation of interest on corrections of value added tax (VAT) and excise duties for past periods became effective 1 July 2023.

The added interest will apply to all corrections, regardless of whether they are initiated by the Danish tax authority or the business itself, and irrespective of the tax periods involved.

With the ordinary period of resumption for VAT and excise duties being 36 months, the current interest level (8.5% per annum) implies that added interest of almost 30% will be calculated for corrections concerning the oldest period of the ordinary period of resumption.

Examples of situations resulting in incorrect VAT or excise duties include:

  • The business has deducted the VAT on a cost for which the documentation was not yet secured or when the VAT has been incorrectly charged by the supplier
  • The business has not calculated canteen VAT or has deducted to much VAT on costs related to employee benefits
  • Lacking (timely) filing of EU export to “EC Sales List”
  • The required documentation in relation to intra-community supplies was not secured by the time of filing
  • The business has incorrectly deemed a supply exempt of VAT
  • The tax base and/or tax rate for calculating the refund for energy taxes and excise duties is wrong

Read a June 2023 report [PDF 119 KB] prepared by the KPMG member firm in Denmark

 

 

Print friendly version

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.