Indirect Taxes in Denmark!

In Denmark, indirect taxes refer to those taxes and duties that an individual pays through goods and services he/she buys. Such taxes include;

  • VAT
  • Customs
  • Green taxes and
  • Excise duties

An individual pays indirect taxes to the state each time he/she buys something or an article. These taxes are included in the price people pay for that object. The seller of that article is subject to pay these taxes, such as VAT and customs. Let’s have a look at various indirect taxes in brief:

VAT: VAT is included in almost every commodity that is being purchased in Denmark. The amount of VAT a person has to pay depends on the number of goods he/she buys. The tax is usually 20 percent of the price that an individual as a customer pays for a commodity. VAT is also imposed on other services, such as repairing a bicycle/car; or even on visiting to the hairdresser etc.

Green Taxes: Green taxes are taxes that an individual pays for utilizing society’s resources. The general rule is that Green Taxes may vary from individual to individual, depending on amount/degree of resources he/she utilizes. To be precise, more resources he/she spends, the more green taxes he/she must pay. This is to make people aware of the consumption of resources and use them judiciously. This type of tax is imposed on resources like petrol, oil, electricity, and water.

Excise Duties: Exercise duties are imposed on sale, import and manufacture of particular articles, such as wine and beer, soft drinks, batteries, sweets and chocolate.

Customs: This is a duty which an individual pays to the state. For example: if a person had traveled to a non-EU country and purchased goods that he is carrying along with him on his return to Denmark, then he may have to pay customs. However, whether the person is entitled to pay customs or not depends on the goods that he had purchased and the volume of goods purchased.

To learn more about the Danish Tax System, contact an Immigration and Visa Consultant!

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