What is VAT (Moms)?

VAT is a tax of 25% to the Danish State, which a company collects from its customers by adding it on top of the sales price.

The company collects the VAT and passes it over to SKAT every three months (usually).

When earning more than DKK 50.000 in a period of 12 consecutive months it is required to register a business (CVR-number) and become VAT-registered. Please notice that VAT will be calculated from a period of 12 consecutive months and not from the calendar year.

More precisely, the rules dictate that you should become VAT-registered the moment you can see that you will surpass a revenue of DKK 50.000. For example if you earn DKK 35.000 over a period of 3 months and expect to continue on the same level, you must VAT-register yourself at that time and must from then start charging VAT on your invoices.

If you over a period of 12 months earn more than DKK 50.000 and have not become VAT-registered, SKAT will calculate your VAT from your total revenue. This means that if you, for example, have a revenue of DKK 70.000 over a period of 12 months, you will be charged VAT from DKK 70.000 and not just from the amount surpassing DKK 50.000.

As a CVR registred Helper you can accommodate the VAT by adding it to your current hourly rate. This way you will end up getting paid the same amount as before, since you of course shouldn't get a lower payout due to this. Fx. if you usually take 140 DKK per hour and now have to pay VAT as well then it will be: 140*1,25 = 175 DKK.