Extension of the credit period for VAT

The credit period for VAT for large companies settling VAT on a monthly basis is temporary extended with one month entailing that the deadlines for filing and payment are as follows:

Please note that deadline for filing and payment for February is still on 25 March 2020.

If for a period the VAT liability is negative, in general it is required that all former VAT returns are already filed in order to have the negative VAT liability disbursed.

This rule will also be amended in the period. If the VAT liability is negative in this period, the Danish Tax Agency will not withhold the VAT liability even though former VAT returns have not been filed, however, on the condition that deadlines for filing the former VAT returns are not exceeded.

E.g. if the VAT liability for March has been positive, VAT must be filed and paid no later than 25 May 2020. If then the VAT liability for April is negative, all other things equal, the VAT return may be filed from 1 May. Then the Danish Tax Agency must handle the negative return (and pay the liability) unless other circumstances apply, even though the VAT return for March 2020 has not yet been filed (nor paid).

The Danish Tax Agency has the normal option to withhold payment of negative VAT liability in supervisory situations. This option will remain and is not part of the bill. Nor does the bill include any amendments of settlement deadlines for companies settling on a quarterly or half yearly basis.