Danish Tax Agency Guidance on Correction of Incorrectly Charged VAT
On 21 May 2025, the Danish Tax Agency (DTA) issued updated guidance revising its long-standing approach to VAT refunds in cases involving incorrectly invoiced output VAT.
The changes come into effect immediately. See more in our Danish VAT guide.
Removal of Repayment Requirement
Previously, a supplier could only obtain a refund of erroneously charged VAT if they repaid the VAT amount to the customer, in line with the principle of unjust enrichment. Under the new practice, this repayment condition has been removed. Businesses may now apply for a refund without reimbursing the customer, provided they issue a credit note or a corrected invoice.
Customer Claims Directly to the DTA
The customer may file a direct claim with the DTA if:
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Recovering the amount from the supplier is impossible or disproportionately difficult; and
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The VAT has already been paid to the DTA.
This option is not available if the DTA has already refunded the VAT amount to the supplier.
Limitations and Exceptions
While the new approach simplifies the process, several restrictions remain:
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No credit note/new invoice possible – If it is impossible to issue a credit note or corrected invoice, the previous rules apply, and the supplier may still be required to commit to passing on the refund to the customer.
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Supplier’s limitation defence – If a supplier invokes the statute of limitations against a customer but still seeks a VAT refund, the DTA will deny the refund to the supplier.
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Supplier already refunded – If the supplier has already received the refund, the customer cannot claim directly against the DTA.
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Employees wrongly registered as taxable persons – These cases will be assessed individually, on an invoice-by-invoice and client-by-client basis.
