Set up Danish taxes in your Shopify store

In this article, we will discuss:

• Tax settings
  • Display product prices including VAT
  • Display product prices excluding VAT
• Tax rates in Denmark and the EU
• Selling goods to customers in Denmark
  • My business is not VAT-registered
  • My business is VAT-registered
• Selling goods to customers in other EU member states
  • Selling as a micro-business
  • Surpassing the micro-business threshold
  • Country-specific registration
• Selling digital goods
  • The VAT rules when selling digital goods
• Selling goods outside the EU
• Invoices

If you want to charge VAT to some customers but not others, you have two options, depending on how you would like to display product prices.

If you sell primarily to consumers (B2C), you may want to display product prices with VAT included.

To display your product prices with VAT included:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Additional configuration section, turn on Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

Optionally, you can enable dynamic tax inclusion. This Shopify feature automatically includes or excludes tax based on the customer's region and adjusts the tax rate accordingly.

Tax display is set for each market. To activate dynamic tax inclusion:

1. In your Shopify admin, go to the Markets page and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Dynamic tax display, then click Done.
4. Click Save to apply the changes.

If you sell mainly to businesses (B2B), you'll probably want to display your product prices without VAT.

To display your product prices excluding VAT:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Additional configuration section, turn off Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

To disable dynamic tax inclusion in a market and show VAT as a separate line at checkout:

1. In your Shopify admin, go to the Markets page and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Show as line item, then click Done.
4. Click Save to apply the changes.

The standard VAT rate (moms, or merværdiafgift) in Denmark is 25%.

Unlike most EU countries, Denmark has no reduced rate; almost everything is taxed at the standard rate, with only a limited list of supplies zero-rated, such as newspapers.

Since January 1, 2026, many commercial leisure and training services that used to be VAT-exempt, such as personal training, fitness classes, yoga, and dance instruction, are taxed at 25%. Exercise in sports clubs and associations remains exempt, but clubs for activities without a significant physical element, such as bridge or chess, must now charge 25% VAT on membership and tournament fees.

Whether you sell physical goods or digital services to consumers (B2C) in the EU, the VAT rate you charge depends on your combined taxable turnover to other EU countries—and, as you'll see below, both count toward the same threshold.

If you're VAT-registered and selling goods to customers in Denmark—whether businesses (B2B) or consumers (B2C)—you must charge Danish VAT.

If your business isn't VAT-registered, you don't charge VAT. You also can't include VAT on your invoices until you register your business for VAT.

You must register for VAT once your turnover exceeds DKK 50,000 in any rolling 12-month period. You can also register voluntarily before reaching this threshold.

If your business is based in Denmark and is VAT-registered, you charge Danish VAT on all sales of goods to customers in Denmark.

For sales to customers outside Denmark, the rules depend on where your customer is located.

If you're selling goods B2B to other EU member states, these sales are zero-rated for VAT, as long as your customer has a valid EU VAT number.

This means you show VAT on your invoices at a 0% rate, while your customer accounts for the VAT in their own country. You must also report these sales to the Danish Tax Agency (Skattestyrelsen) in your EU sales list.

If you're selling goods to consumers (B2C) in other EU member states, you charge VAT. The rate depends on whether your cross-border sales exceed the €10,000 EU distance-selling threshold.

As long as your cross-border B2C sales to other EU countries (distance sales of goods plus telecommunications, broadcasting, and electronic services) stay at or below €10,000 (excluding VAT) in both the current and the previous calendar year, you can charge Danish VAT on those sales.

No additional VAT registration or application is required while you remain below this threshold.

This rule only applies if your business is established only in Denmark and your goods are shipped from Denmark.

You can also choose to charge the customer's country rate from the first euro, but that choice binds you for two calendar years.

To set VAT rates and charge your home country's VAT rate on eligible EU sales:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using your home country registration.
5. Select your Country of registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
6. Click Collect VAT to save your changes.

If your combined cross-border B2C sales to other EU member states exceed €10,000 (excluding VAT) in the current or the previous calendar year, you charge the VAT rate of the country you're shipping to.

This means you'll charge different VAT rates to customers in different EU countries, ranging from 17% to 27%.

Registering for VAT in every EU member state can be time-consuming. The One-Stop Shop (OSS) Union scheme solves this: you still charge VAT at the rate of the country you're selling to, but you only need to file one OSS VAT return in Denmark.

To set VAT rates for the OSS scheme and charge your customers' shipping country VAT rate on all B2C orders:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using a One Stop Shop (OSS) registration.
5. Select your Country of OSS registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
6. Click Collect VAT to save your changes.

You need a local VAT registration in another EU country if you make taxable sales there that OSS doesn't cover, for example, if you store stock in that country and ship to customers from there.

In that case, you can no longer use the €10,000 threshold.

If that's your situation, add a local VAT registration number for that country in Shopify, so it automatically applies the correct VAT rate.

As a result, you'll charge different VAT rates to customers in different EU countries, depending on where you hold a registration.

To add a local VAT registration number:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions section, click European Union.
3. In the Collect VAT in an EU country section, click Collect VAT (or Collect in another location if you already have a registration).
4. Select the Registration country and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet. You can update it later.
5. Click Collect VAT to save your changes.

If you can't select the additional country you're VAT-registered in, you may need to create a shipping zone first.

To create a shipping zone:

1. In your Shopify admin, go to the Settings → Shipping and delivery page.
2. In the Shipping profiles section, click the profile you want to add the zone to (for example, General profile).
3. In the Shipping zones section, click + Zone.
4. Name the zone, add the country (or countries) you're VAT-registered in using the search bar, and click Done.
5. Add shipping rates to make the zone available.
6. Click Save to apply the changes.

Special rules apply when selling digital services from Denmark to other EU countries. But first, it's important to understand exactly what counts as a digital service.

Digital goods or services include radio and television broadcasting services, telecommunication services, and electronically supplied services, such as online magazines, music, films, and games.

Just because a company uses the internet to facilitate trading doesn't mean it provides e-services.

For example, selling goods where the order and processing happen electronically (as through a Shopify store) isn't a supply of digital services. This counts as a regular sale of goods and follows the usual VAT rules described above.

If you supply digital services from Denmark to consumers in other EU countries, the same €10,000 threshold described above applies—digital sales count toward that combined EU-wide total alongside your physical goods sales.

As long as your combined turnover from goods and digital services to non-VAT-registered customers elsewhere in the EU stays at or below €10,000, you can keep charging Danish VAT.

Once that combined total exceeds €10,000, you must charge VAT at the rate of the customer's country for both goods and digital services going forward—ranging from 17% to 27%.

If you sell digital services to VAT-registered businesses (B2B), they're responsible for accounting for any VAT due in their own country.

Registering for VAT in multiple countries can be time-consuming. Shopify store owners in Denmark selling to other EU countries can register for the One-Stop Shop (OSS) instead.

The OSS scheme lets you report the VAT due on your goods and digital services in your own member state through a single web portal.

If you're selling goods from Denmark outside the EU—whether B2B or B2C—these sales are zero-rated for VAT. This means you don't charge Danish VAT on your invoices, as long as you keep proof that the goods left the EU.

Once you've set up your tax rates correctly in your store, Sufio automatically creates valid invoices with a detailed breakdown of the VAT charged.

Invoices can be created in multiple languages and include all the necessary details to make them compliant with invoicing legislation in the EU.

Issuing invoices with the correct tax breakdown is important for your bookkeeping and tax purposes.

If you are selling to businesses (B2B), Sufio invoices include all the required information, as well as the VAT registration numbers (CVR-nr. or Momsregistreringsnummer) of your business and your business customers.