Businesses may claim VAT deductions up to six months after the supplier’s invoice date, within the VAT return currently due. This removes the requirement to adjust deductions back to the VAT return covering the invoice date.
Denmark’s Ministry of Taxation has issued an amendment to the VAT Executive Order, effective as of 1 July 2025, which modifies the timing rules for input VAT deductions.
Under the revised rules, businesses may claim VAT deductions up to six months after the supplier’s invoice date, within the VAT return currently due. This removes the requirement to adjust deductions back to the VAT return covering the invoice date.
The amendment requires consistent application of deduction principles across all supplier invoices. For instance, if a business deducts VAT only after final purchase approval, this approach must be applied uniformly across all transactions.
The update does not address VAT deduction accrual issues related to energy taxes or reverse charge transactions on cross-border purchases.
Earlier, the Danish Business Authority announced new rules under the Danish Bookkeeping Act that require companies to use digital bookkeeping systems capable of handling e-invoices, starting 1 January 2025.
