E-Commerce: Cyprus vs Denmark VAT Rules

    How VAT obligations differ for e-commerce between Cyprus and Denmark.

    CriterionCyprusDenmark
    Standard rate applied19%25%
    Registration threshold€15,600 annual turnoverDKK 50,000 (~€6,700)
    Filing frequencyQuarterlyMonthly, quarterly, or biannually
    Invoicing constraintsStandard EU invoice requirements. Tax invoices must be issued within 30 days of supply. Self-billing allowed.Standard EU requirements. Digital bookkeeping mandatory from 2024. Invoices must reference the Danish CVR number.
    Sector-relevant regimesSpecial scheme for travel agents · Reduced rate for renovation of private dwellings · IP box regime interacts with VAT planningNo reduced VAT rates — 25% applies to almost everything · Mandatory digital bookkeeping · Special rules for non-profit organizations
    Penalty exposure10% surcharge on late payments. €50 per day penalty for late filing, capped at €1,000.Interest at the national bank rate + 0.7% per month. Fixed fines for late filing.

    Typical use cases

    Physical Goods
    Tangible products shipped to customers across the EU.
    Digital Products
    E-books, software licenses, online courses, and digital downloads.
    Dropshipping
    Selling products shipped directly from a third-party supplier.
    Marketplace Selling
    Selling through Amazon, eBay, Etsy, and other marketplaces.
    Subscription Boxes
    Recurring product deliveries and subscription-based commerce.

    Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC

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