VAT declaration of Denmark overview

This article describes how to set up the value-added tax (VAT) declaration for Denmark, preview it in Microsoft Excel, and then submit it to the Danish Tax Agency (Skattestyrelsen).

As of version 10.0.37 of Dynamics 365 Finance, direct submission of VAT returns in XML format to the Danish Tax Agency is supported.

The VAT return with direct submission to Danish Tax Agency feature in Finance supports filing a VAT return for multiple VAT registrations and collecting tax data from several legal entities into one VAT declaration in the same system database.

For more information about how to prepare a VAT return for direct submission to the Danish Tax Agency, see Submit a VAT return in XML format to the Danish Tax Agency.

Sharing customer data

When you enable Finance to interoperate with the Danish Tax Agency VAT API, both customer content and personal data are shared with the Danish Tax Agency as part of the submission of your VAT declaration. For more information about the types of information that are included in your submission, view the Danish Tax Agency requirements. A system administrator can disable the interoperation with the Danish Tax Agency web service in Finance by going to Tax > Setup > Electronic Messages.

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VAT declaration

Data that's reported in a VAT declaration in Excel format has the same structure as data that's reported in a VAT declaration in XML format. The VAT declaration in Excel format is used to preview the amounts that are calculated for reporting to the Danish Tax Agency in XML format.

To automatically generate a VAT declaration in Excel or XML format, create enough sales tax codes to keep a separate VAT accounting for each box of the VAT declaration. Additionally, in the application-specific parameters of the Electronic reporting (ER) format for the VAT declaration, associate sales tax codes with the lookup result for the boxes on the VAT declaration.

For Denmark, you must configure the Report field lookup lookup. For more information about how to set up application-specific parameters, see Set up application-specific parameters for VAT declaration fields.

In the following tables, the "Lookup result/Total" column shows the lookup result that's preconfigured for a specific box of the VAT declaration format. Use this information to correctly associate sales tax codes with the lookup result and then with the box of the VAT declaration.

The VAT declaration in Denmark contains the following information.

VAT payable

Description	Tax base/Tax amount	Lookup result/Total
Output VAT	Tax amount	OutputVAT DomesticVATUseTax (also reported in the "Input VAT" box)
VAT on goods etc. purchased abroad	Tax amount	PurchaseGoodsAbroad PurchaseGoodsAbroadUseTax (also reported in the "Input VAT" box) PurchaseGoodsEU (The tax base is reported in "Box A - acquisition of goods.") PurchaseGoodsEUUseTax (The tax amount is also reported in the "Input VAT" box. The tax base is reported in "Box A - acquisition of goods.")
VAT on services purchased abroad subject to a reverse charge	Tax amount	PurchaseServicesAbroad PurchaseServicesAbroadUseTax (also reported in the "Input VAT" box) PurchaseServicesEU (The tax base is reported in "Box A - acquisition of services.") PurchaseServicesEUUseTax (The tax amount is also reported in the "Input VAT" box. The tax base is reported in "Box A - acquisition of services.")
Total payable	Tax amount	Total of the previous three boxes

Deductions

Description	Tax base/Tax amount	Lookup result/Total
Input VAT	Tax amount	InputVAT DomesticVATUseTax (also reported in the "Output VAT" box) PurchaseGoodsAbroadUseTax (also reported in the "VAT on goods etc. purchased abroad" box) PurchaseServicesAbroadUseTax (also reported in the "VAT on services purchased abroad subject to a reverse charge" box) PurchaseGoodsEUUseTax (also reported in the "VAT on goods etc. purchased abroad" box) PurchaseServicesEUUseTax (also reported in the "VAT on services purchased abroad subject to a reverse charge" box)
Oil and bottled gas duty	Tax amount	OilGasDuty
Power/electricity duty	Tax amount	PowerElectricityDuty
Natural gas and town gas duty	Tax amount	NaturalTownGasDuty
Carbon duty	Tax amount	CarbonDuty
CO2Duty	Tax amount	CO2Duty
Water charge	Tax amount	WaterCharge
Total deductions	Tax amount	Total of the previous six boxes
Total amount of duties (positive amount = make payment, negative amount = receive refund)	Tax amount	"Total payable" – "Total deductions"

Supplementary information

Description	Tax base/Tax amount	Lookup result/Total
Box A - acquisition of goods. The value without VAT of intra-Union acquisition of goods.	Tax base	PurchaseGoodsEU PurchaseGoodsEUUseTax
Box A - acquisition of services. The value without VAT of intra-Union acquisition of services.	Tax base	PurchaseServicesEU PurchaseServicesEUUseTax
Box B - supply of goods - to be reported to "EU-sales without VAT"/DK VIES. The value without VAT of intra-Union supply of goods	Tax base	SalesGoodsEU
Box B - supplies - not to be reported to "EU-sales without VAT"/DK VIES. The value without VAT of certain intra-Union supplies, for instance of installation, assembly, distance sales, and new means of transport to non-taxable persons.	Tax base	SalesInstallationAssemblyEtcEU
Box B - supply of services. The value without VAT of intra-Union supply of services for which the purchaser is liable to pay the VAT as reverse charge - must also be reported to "EU-sales without VAT"/DK VIES.	Tax base	SalesServicesEU
Box C - other supplies. Value of supply of other goods and services that are supplied without VAT in the territory of Denmark, to other EU Member States, and to other countries/regions or territories.	Tax base	OtherSuppliesWithoutVAT

Purchase reverse charge VAT

If you configure sales tax codes to post incoming reverse charge VAT by using use tax, associate your sales tax codes with the lookup result of Report field lookup that contains "UseTax" in the name.

Alternatively, you can configure two separate sales tax codes: one for VAT due and one for VAT deduction. Then associate each code with the corresponding lookup results of Report field lookup.

For example, for taxable intra-community acquisitions, you configure sales tax code UT_S_EU with use tax and associate it with the PurchaseGoodsEUUseTax lookup result of Report field lookup. In this case, tax amounts that use the UT_S_EU sales tax code are reflected in the "VAT on goods etc. purchased abroad" and "Input VAT" boxes. Tax bases are reflected in "Box A - acquisition of goods."

Alternatively, you configure two sales tax codes:

• VAT_S_EU, which has a tax rate value of -25 percent
• InVAT_S_EU, which has a tax rate value of 25 percent

You then associate the codes with lookup results of Report field lookup in the following way:

• Associate VAT_S_EU with the PurchaseGoodsEU lookup result.
• Associate InVAT_S_EU with the InputVAT lookup result.

In this case, amounts that use the VAT_S_EU sales tax code are reflected in the "VAT on goods etc. purchased abroad" box and "Box A - acquisition of goods." Amounts that use the InVAT_S_EU sales tax code are reflected in the "Input VAT" box.

For more information about how to configure reverse charge VAT, see Reverse charges.