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VAT/moms rebate

To obtain VAT rebate of an expense you have incurred, you must meet three requirements.

The three requirements are:

  1. The expense must relate to an action subject to VAT in the company
  2. Expenses must include VAT
  3. Exceptions

Read about VAT/ Danish moms in general.

1. The expense must subject to VAT

Often, this requirement is met automatically, but if a company carries out both activities exempt from VAT as well as subject to VAT, the requirement becomes relevant.

E.g. a newsagent who, besides magazines, convenience goods, etc., handles pool betting and lottery tickets which are activities exempt from VAT. In such cases, VAT accounts must be kept in a special way.
You need to consult SKAT or your accountant for more info on this.

2. Expenses must include VAT

Many of the day-to-day expenses defrayed in a company, are exempt from VAT. E.g. stamps, insurance, newspapers, some courses, some subscriptions and train tickets.
To meet the VAT inclusion requirement, supplier invoices must indicate VAT amounts or read "VAT/moms included" or similarly.

3. Exceptions

The politicians have passed a number of rules, according to which VAT will not be rebated even when the first two requirements are met.
The primary exceptions: Expenses relating to purchase and maintenance of passenger cars, staff care, hotels and meals. In some instances, ¼ of the VAT expenses for hotels and meals will be rebated.

Petrol and garage
Thus, VAT on operating costs such as petrol and garage bills related to a car exclusively used as a company car, is non-rebatable. This does not, however, prevent you from entering the purchase of the car into your tax accounts - other rules apply to this aspect.

Yellow low-tax licence plates
Special rules apply to commercial vehicles with yellow low-tax licence plates. In some cases VAT on these operating costs is rebatable, even when you do not enter the corresponding expenses directly into your tax accounts. You are allowed to enter the total VAT on such commercial vehicle operating costs into your VAT accounts, also if you partly use the car for private purposes.

Contact an accountancy firm or bookkeeping company for help

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VAT/moms rebate
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