If you’re selling on Amazon Denmark via FBA, VAT registration is not optional. With one of the highest VAT rates in Europe, compliance is crucial to avoid penalties and protect your Amazon account.
VAT Rates in Denmark
Denmark introduced VAT in 1967, making it one of the first countries in Europe to adopt it.
- Standard rate: 25% (applies to almost all goods and services)
- No reduced rates – unlike many EU countries, Denmark applies a flat VAT system.
- Certain services, such as healthcare, education, and finance, are exempt.
When Do Amazon Sellers Need to Register?
- Danish businesses must register if their taxable turnover exceeds 50,000 DKK (around €6,700) in a 12-month period.
- EU-based Amazon sellers must register if their total EU cross-border sales to consumers exceed the €10,000 EU-wide distance selling threshold.
- Non-EU Amazon FBA sellers must register immediately if:
- You store goods in a Danish fulfilment centre, or
- You sell directly to Danish consumers.
⚠️ For non-EU sellers, there is no registration threshold — VAT is due from your very first sale.
Fiscal Representatives & Agents
- Non-EU businesses are required to appoint a fiscal representative in Denmark, who is jointly responsible for VAT compliance.
- EU businesses do not need a representative but may still appoint a tax agent to manage filings and communication with the Danish Tax Agency.
Registration & Filing
To register for VAT in Denmark, you’ll typically need:
- Business incorporation documents
- Proof of trade activity (Amazon seller account, invoices, contracts)
- ID for directors or owners
Registration is processed by the Danish Tax Agency (SKAT) and normally takes 2–4 weeks. Once complete, you’ll receive your Danish VAT number (CVR number), which must also be linked to your Amazon Seller Central account.
VAT returns are generally filed quarterly, though larger businesses may need to file monthly. All returns are submitted electronically via the SKAT portal.
Risks for FBA Sellers
- Late or missed registration can result in backdated VAT bills, penalties, and daily interest charges.
- Administrative fines can quickly add up, especially for repeat offenders.
- Non-compliance may lead to Amazon account suspension, cutting off access to Danish and EU customers.
Final Thoughts
For cross-border Amazon FBA sellers, VAT in Denmark applies from the first taxable sale if you are non-EU, or once you exceed the EU-wide €10,000 threshold as an EU seller. With Denmark’s high 25% rate, timely registration and proper filings are essential to avoid costly mistakes.
👉 Watch the full video https://youtu.be/-lCaJEc6DDk?si=KAVUhJrhZXVg9YAr where I break down Denmark’s VAT rules for FBA and cross-border sellers.