Have you heard about the term Hygge? This term describes a cosy feeling and contentedness, which the damp and rainy England might not have. If you are looking for a mini escape, welcome to Denmark - the home of Hygge. Denmark is more than just a land of fairytales. The country has everything you are looking for. From fascinating Vikings history to delicious Nordic cuisine and cutting-edge design, you will always have things to do!
And don’t forget to shop in Denmark! Part of the unique charm of Denmark is getting yourself lost by exploring the local shopping. You might find the perfect gifts, containing the joyful spirit of Denmark, for your loved ones. However, you might also be surprised that Danish VAT is 25%. That’s a lot of money!
Feeling concerned about the Danish VAT? Don’t be! The Danish VAT refund system is here to help non-EU residents, including the British, reclaim the tax on goods bought during their visit. This guide will walk you through the process, ensuring you make the most of your VAT refund in Denmark. Read on to discover how you can save!
How much is VAT in Denmark?
As a very active member of the EU, Denmark also shares specific tax rules on goods and services with other countries in the union. Denmark can also decide on its VAT rate. Denmark has a very straightforward tax rate: you will mostly pay the standard tax rate of 25%.1
How much VAT is refunded in Denmark?
Determining exactly how much VAT is refunded in Denmark is very complicated. But in general, you will not get the total amount back. Here is an explanation for it:
If you use the intermediary refund agent to get your VAT refund in Denmark, you will have to pay the administration fees. The fee can vary and may be deducted directly from the refund amount. Hence, your actual VAT refund amount may differ in each case. Depending on the amount, you will typically get a refund of between 10% and 19% of the item's total price.2
Who is eligible for tax free shopping in Denmark?
If you are a tourist in Denmark, you are entitled to a VAT refund for the goods that you buy during your stay. You need to meet these conditions:3
- You can provide proof of identity showing that your usual place of residence is outside the EU;
- You only travel to Denmark for holiday and will go back after your holiday ends;
- You will take the products with you in your personal luggage within three months after the end of the month in which you made the purchase; and
- Your total value of goods must be more than DKK 300. For Norwegians and the Åland islands, the amount is DKK 1,200.
How to get VAT refund in Denmark?
There is more than one way to get a VAT refund in Denmark. You can either do it by yourself or ask a tax intermediary refund agent to proceed with your VAT refund. Here are some steps you can do to claim back your money:
Ask for an invoice from the shop
When making a purchase, be sure to request a receipt and confirm in advance that the retailer or supplier will refund the VAT. The invoice must contain the following details:4
- Date of issue;
- Name and address of the shop;
- VAT registration no. of the shop;
- Your name and address abroad; and
- Quantity, type and value of goods (sales price incl. VAT and the VAT amount).
The sales assistant at the shop might ask you to show your identification document. So make sure you bring along your passport, ID card or other form of ID. You cannot get a refund if you are shopping on behalf of somebody else.
Have the forms stamped
If you are leaving from Denmark directly to home, you should get your invoice stamped right at the airport. In order to get the stamp, you will need to show customs the following documents:
- Passport;
- Ticket or itinerary;
- Documentation for non-EU residency; and
- The goods;
However, if you travel from Denmark to another EU country before going home, the customs in the last destination EU country should stamp your invoice. If you are travelling through multiple airports, the customs at the last EU airport must stamp your invoice.
Obtain a VAT refund
After receiving the stamped invoice or obtaining documentation or a certificate, you must send it to the store where you purchased the goods. The store will then refund the VAT amount to you.
Or, an easier way is to go directly to the tax intermediary refund agent. Depending on which agent you use, your VAT will be refunded to you in cash, through your credit card, or other payment method. If you are currently doing your VAT refund at Copenhagen Airport, you can find these agents in Terminal 3.
The article explains the steps to get your VAT refund back in Denmark. Remember to keep this article while you are travelling to Denmark. This is one way you can save for your next adventures. Moreover, if you might want to know one more secret to save even more:
Tourists can receive a VAT refund with the card! However, if the denominated currency of the card (e.g., GBP) is different from the local currency (e.g., EUR), it may be converted automatically. The card issuer determines the conversion rate, typically with a mark-up. To minimise costs on currency conversion, consider receiving your refund with a Wise debit card, which only charges a small fee and converts at mid-market rates without markups and allows you to hold 40+ currencies, including DKK.
Please be aware that tax regulations and procedures may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.
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Sources used for this article:
Sources last checked on 11-Jun-2024.
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