๐Ÿงฎ

VAT Calculator

Add VAT to a net amount or extract VAT from a gross amount. Supports the standard Danish 25% VAT rate.

kr
๐Ÿ‡ฉ๐Ÿ‡ฐ All calculations are based on Danish rules, rates, and currency (DKK). This calculator is translated for convenience but applies exclusively to Denmark.

VAT (Moms) Calculator

The Danish VAT system applies a standard rate of 25% on most goods and services. This two-way calculator lets you either add VAT to a net amount or extract the VAT component from a gross (VAT-inclusive) amount. This is one of the most common calculations in Danish business, used daily by accountants, business owners, and freelancers alike.

Adding VAT vs. Extracting VAT

When you add VAT, you simply multiply the net amount by 1.25 to get the gross total. For example, 10,000 kr becomes 12,500 kr including VAT. When extracting VAT from a gross amount, the calculation is different: divide by 1.25 to find the net amount, and the difference is the VAT. So 12,500 kr gross contains 10,000 kr net and 2,500 kr in VAT. This distinction is important when you receive a total price and need to determine how much of it is tax.

VAT Rules in Denmark

All businesses with annual taxable turnover above 50,000 kr must register for VAT with SKAT. VAT-registered businesses collect VAT from their customers and can deduct VAT paid on business purchases (input VAT). The difference is settled with SKAT either quarterly or monthly. Some goods and services are exempt from VAT in Denmark, including certain financial services, insurance, education, and healthcare. If you trade internationally within the EU, reverse charge rules may apply.

Frequently Asked Questions

How do I calculate VAT from a gross amount?

To extract VAT from a gross (VAT-inclusive) amount, divide by 1.25 to find the net amount. The difference is the VAT. For example, 12,500 kr gross contains 10,000 kr net and 2,500 kr VAT.

When must I register for VAT in Denmark?

You must register for VAT with SKAT when your annual taxable turnover exceeds 50,000 kr. Once registered, you must charge 25% VAT on all taxable goods and services and file VAT returns quarterly or monthly depending on your business size.

Are any goods or services exempt from VAT in Denmark?

Yes, certain goods and services are exempt from Danish VAT, including financial services, insurance, education, healthcare, and some cultural activities. If you trade internationally within the EU, reverse charge rules may also apply.

Can I deduct input VAT on business purchases?

Yes, VAT-registered businesses can deduct input VAT paid on business-related purchases from the VAT collected from customers. The difference is settled with SKAT. You must keep proper documentation of all purchases to claim the deduction.

Sources