Quarterly VAT returns
Companies are required to settle their VAT four times a year. This is done by completing a VAT return. The deadline is one month and 10 days after the VAT quarter ends.
Companies are required to pay VAT on all sales of goods and services, including imports from other countries. The VAT is not payable, however, if the goods or services are exported.
By the end of each quarter, the company works out how much has been purchased and how much of this is VAT. The company also works out how much is sold domestically and by exportation, and how much of this is VAT. By doing this, the company sees if it has purchased more than it has sold and vice versa.
If the sale-VAT exceeds the purchase-VAT, the company must pay the corresponding amount. On the other hand; if the purchase-VAT exceeds the sale-VAT, the company receives the difference.
If a company consistently has a negative VAT return, it can apply for permission to settle the VAT once a month or once a week.
Negative VAT will be refunded within 3 weeks of submission of the VAT return.
If a VAT return is late, one percent is added to the amount; however, not less than DKK 300 and not more than DKK 1,000. If VAT owed is not paid by the deadline, 0.7% is added in interest per month.
If the VAT return is not submitted, TAKS will make a preliminary assessment and enter an estimated amount.
Please note, the VAT return must be submitted every quarter, even when there have not been any business activities in the period.
The deadlines for VAT returns are:
- For the first quarter (January - February - March) the deadline is 10 May
- For the second quarter(April - May - June) the deadline is 24 August
- For the third quarter (July - August - September) the deadline is 10 November
- For the fourth quarter (October - November - December) the deadline is 10 February in the following year.
If the date falls on a weekend or a holiday, the deadline will be the following workday.
There are two ways to submit a VAT return:
- Download the form from this website, complete it and submit it to TAKS via secure e-mail to email@example.com or by post to TAKS, Postboks 2151, FO-110 Tórshavn. A fee is charged for submitting the VAT return this way.
- Or you can submit the VAT return for free online on Vinnugluggin. If you are not a registered user of Vinnugluggin, click "About Vinnugluggin" to read more.