An invoice without VAT still needs a clear tax treatment. For cross-border B2B services, identify the customer, the establishment receiving the service and any exception before deciding who accounts for VAT. This guide connects that decision to the invoice and Danish reporting fields.
A Danish company buying Irish software, a US parent charging a Danish subsidiary and a Danish consultancy advising a Swedish customer can follow different reporting paths. Start with the actual service and contract. For the separate question of whether the business must register, see our Danish VAT registration guide.
What reverse charge means
Under reverse charge, the customer calculates and reports VAT instead of paying VAT charged by the supplier. It is not the same as VAT exemption or a zero-rated sale.
Suppose a Danish VAT-registered company buys DKK 100,000 of ordinary consultancy from an EU supplier for its Danish operation. If the general B2B rule applies, the buyer normally calculates DKK 25,000 of Danish VAT. Full deduction would allow the same amount as input VAT. Both entries must still be recorded, even when the net effect is zero.
If only 40% is deductible, input VAT is DKK 10,000 and the net VAT cost is DKK 15,000. The invoice's lack of supplier VAT does not remove the buyer's reporting duty or establish a right to deduct.
Start with the service, customer and recipient
First establish whether the transaction is a service. Equipment, goods with installation and bundled contracts need their own classification. An intercompany recharge is not automatically outside VAT: document the service delivered and its recipient.
For an EU business customer, obtain its relevant VAT number, check it in VIES and retain dated evidence. Match the legal name and transaction to the customer. A valid number supports business status; it does not override a place-of-supply exception. Our CVR and SE number guide explains the Danish identifier and registration checks.
For a non-EU customer, retain reliable evidence of its identity and business activity. Where uncertain, request a local tax-authority certificate or business tax identifier. The Danish Tax Agency's non-EU sales guidance explains the evidence requirement and the treatment where business status cannot be established.
Identify the establishment actually receiving and using the service. A headquarters billing address may not settle this if a different establishment receives it. Record the contracting entity, ordering team, service recipient and VAT number used. A Danish branch, CVR number or corporate-tax permanent establishment does not by itself establish a VAT fixed establishment. Those are separate analyses.
The four usual cross-border service flows
The general B2B rule places the service where the business customer is established, or at the relevant receiving fixed establishment. The following assumes that rule applies, the parties act as businesses and no exemption, special scheme or exception changes the result.
On a small screen, swipe across the table to see all columns.
| Service flow | Normal Danish treatment | Reporting consequence |
|---|---|---|
| Danish business buys from an EU supplier | Danish customer accounts for reverse-charge VAT | EU purchase value in Rubrik A – ydelser; calculated VAT in the foreign-service reverse-charge field; eligible input VAT separately |
| Danish business buys from a non-EU supplier | Danish customer normally accounts for reverse-charge VAT | Same VAT field, but no non-EU service value in the EU-only Rubrik A – ydelser |
| Danish business sells to an EU business | Invoice normally carries no Danish VAT; customer accounts for VAT | Rubrik B – ydelser and EU-salg uden moms, identified by customer VAT number |
| Danish business sells to a non-EU business | Normally outside Danish VAT, subject to exceptions | Normally Rubrik C; no EU-salg uden moms |
Use the field Moms af ydelseskøb i udlandet med omvendt betalingspligt for Danish VAT on foreign services subject to reverse charge. Deduct only the amount allowed as Købsmoms (indgående moms). The value boxes and calculated tax are different amounts; do not post the invoice value into the VAT field.
The Tax Agency's international-trade reporting guide gives the current field names. Keep EU purchases, non-EU purchases, output VAT and deductible input VAT separately reconcilable in the ledger.
Exceptions that can change the answer
Check the service category before applying the customer-location rule. The European Commission's place-of-taxation guidance distinguishes these common cases:
On a small screen, swipe across the table to see all columns.
| Service | Place-of-supply starting point |
|---|---|
| Services sufficiently connected with immovable property | Where the property is located |
| Admission to a physical business event | Where the event takes place; virtual B2B attendance follows the general customer-location rule |
| Passenger transport | According to distances covered |
| Restaurant and catering services | Where physically performed, with separate rules for certain onboard services |
| Short-term hire of means of transport | Where put at the customer's disposal; generally up to 30 days, or 90 days for vessels |
A physical conference ticket, sponsorship and an event organiser's services are not interchangeable. Likewise, a property address alone does not classify every consultant's work as a property service. Review the actual connection and deliverable. For project-wide coordination, see construction projects in Denmark.
Denmark also applies use-and-enjoyment rules to selected services involving non-EU countries. These can bring selected services used in Denmark within Danish VAT or affect purchases primarily used outside the EU. Review the category and actual use before treating a recurring consultancy, advertising or rights arrangement as routine.
These rules identify the taxing country; the next question is who must account for the VAT there. Foreign registration, local reverse charge and deduction may require a separate assessment.
Check the invoice before posting it
For a Danish supplier's general-rule sale to an EU business, prepare a full invoice with the customer's relevant VAT number and clear reverse-charge wording. Check:
- Supplier and customer legal names, addresses and relevant VAT details.
- Unique invoice number, invoice date and required service date or period.
- A useful service description, amount and currency.
- No Danish VAT charged where the reverse-charge treatment applies.
- “Reverse charge” wording or an appropriate legal reference.
- A posting code that feeds both Rubrik B – ydelser and the EU customer listing.
Keep the contract, purchase order, customer-status evidence and classification note alongside the invoice. See the official EU documentation requirements.
If an EU supplier charges foreign VAT by mistake, request a correction and repayment. The Tax Agency's EU purchase guidance says Danish VAT must still be calculated on the invoiced amount. Do not treat foreign VAT as Danish input VAT. Reconcile the credit note, corrected invoice, payment and any return correction rather than silently replacing the original entry.
Two examples for the finance team
EU consultancy with full deduction
A Danish trading company receives a DKK 80,000 invoice from a Dutch consultant for ordinary services received by its Danish headquarters. Assume the general rule applies and the purchase is fully deductible. It records DKK 80,000 in Rubrik A – ydelser, DKK 20,000 as reverse-charge VAT and DKK 20,000 as input VAT. Net VAT is zero; the gross entries remain reportable.
Non-EU management services with partial deduction
A Danish company receives a DKK 200,000 service charge from its US parent. Assume Danish reverse charge applies and the supported deduction entitlement is 60%. Output VAT is DKK 50,000, deductible input VAT is DKK 30,000 and the net VAT cost is DKK 20,000. The purchase value is not included in Rubrik A – ydelser. Keep evidence of the services and allocation; a label such as “management fee” does not establish the treatment.
These examples illustrate the calculation under stated assumptions. They do not determine the classification or deduction entitlement for another contract.
Reconcile the VAT return and EU sales listing
For ordinary EU B2B service sales, reconcile Rubrik B – ydelser to the service amounts reported by customer in EU-salg uden moms. The Tax Agency's standard guidance specifies reporting by the 25th of each month; check the applicable reporting period and concrete due date. The ordinary VAT return follows the business's assigned deadline.
Where there were no reportable EU sales, the Agency says no zero listing is required in EU-salg uden moms. This is distinct from an ordinary VAT return, which may still require a nil return. Our VAT returns, deadlines and corrections guide covers that filing process.
Some services taxed elsewhere, including specified property, passenger-transport, catering and short-term vehicle-hire services in another EU country, belong in Rubrik C rather than Rubrik B – ydelser under the Danish reporting guidance. Do not use a single “foreign sale” posting code for every transaction.
Before closing the period, reconcile purchase bases, reverse-charge output VAT, deduction restrictions, EU customer listings and credit notes. For support coordinating the records and recurring close, see Danish accounting and VAT reporting.
Reverse charge does not settle every registration question
A foreign supplier of an ordinary general-rule service to a Danish business may not need Danish VAT registration solely for that supply when the customer accounts for VAT. Review the whole activity before relying on that conclusion: private customers, property services, goods, local subcontractors and an involved Danish establishment can change the position.
VAT-exempt businesses can also have obligations on services purchased abroad. The absence of taxable sales does not automatically remove reverse-charge liability or create deduction rights. Confirm registration and payment requirements before buying recurring foreign services.
The official foreign-business registration guidance identifies activity-specific triggers. Use our VAT registration guide to prepare the broader registration assessment. Ordinary domestic services do not become reverse charge just because both parties agree to omit VAT.
Keep one decision record for each service flow
Record the supplier, customer, business-status evidence, service, receiving establishment, place-of-supply rule, exceptions considered, VAT liability, deduction basis, invoice wording and reporting fields. Assign a person to resolve open questions before the first invoice.
Revisit that decision when the service, recipient, property or event location, establishment or subcontracting arrangement changes. Escalate mixed contracts, uncertain customer status, partial deduction and multi-country establishments for advice based on the full facts.
Confirm the VAT treatment before the first invoice
Tell us what service you buy or sell, the countries involved and where the recipient is based. We can assess the Danish bookkeeping and reporting support required and coordinate any specialist review within an agreed scope.
General information checked against current official sources on 14 October 2026. VAT treatment, registration and deduction depend on the actual transaction and establishment facts.