VAT representation in Denmark is a mandatory business requirement for non-EU companies that are subjects to VAT-taxable activities. In this way, setting up a fiscal representative company in Denmark has become an essential step to register a foreign company in this country. In this article, our specialized Danish attorneys offer detailed information on how to open a fiscal representative in Denmark, including: what does it mean, key requirements, documentation and more.
How fiscal representatives work in Denmark
A fiscal representative in Denmark, also known as VAT or tax representative, is a company or authorized individual in Denmark who has the ability and responsibility to manage VAT obligations on behalf of other companies, typically for non-EU companies. Danish VAT representatives work under the legal framework imposed by the Danish Tax Agency. Generally, fiscal representatives in Denmark handle various activities, including:
- VAT registration;
- Monthly or quarterly VAT filing returns;
- VAT payment processes;
- VAT refund claims;
- Handling tax audits;
- Communication with the Danish Tax Authority;
- VAT advisory.
At our Danish law firm, we can offer specialized information on how to follow all the legal requirements to establish a fiscal representative in Denmark.
Requirements to open a fiscal representative in Demark
Before setting up a fiscal representative company in Denmark, it is important to have a better understanding of the basic requirements and formalities imposed by the Danish authorities:
- A fiscal representative must be a legal entity which is established in Denmark and owns residency in this country;
- The Danish tax representative must assume joint liability of the client’s VAT obligations;
- The VAT representative in Denmark has the commitment to arrange a financial security or guarantee, matching estimated VAT exposure per quarter of a financial year.
Moreover, in the case of general representation (limited representation covers only imports from non-EU countries without VAT payment at customs) as a fiscal representative in Denmark, the Article 23 import permit must be obtained from the responsible authorities in this country in order to legally operate.
Documents to establish a fiscal representative in Denmark
With the purpose to set up a fiscal representative in Demark, key needed documents are required by the authorities in charge:
- Identification documents of founders: passport or national ID;
- Company name and address;
- Articles of Association;
- Memorandum of Association;
- Business digital signature;
- Registration application at the Central Business Register;
- VAT registration application;
- Article 23 application (if needed);
- Business address confirmation (must be in Denmark).
For specialized support regarding the documentation process, our Danish lawyers and company formation agents can offer their assistance to prepare and verify the needed papers.
Data on companies in Denmark
Companies in Denmark are showing growth and development over the last years, as recent statistics present:
- In May 2025, there were 561,488 companies registered in Denmark, representing 1,21% of the total companies registered in Europe;
- From this total, 218,264 Danish companies were in the finance, insurance and real estate industry;
- The second biggest company industry in Denmark is represented by services with 215,280 businesses.
Furthermore, our Danish business specialists offer of variety of services across the country regarding business registration and tax regulations in this country. For instance, our accountants in Denmark can offer support in: tax-related matters, annual registrar, payroll regulations and more.
For more details and professional support on how to open a fiscal representative in Denmark, do not hesitate to contact us.