E-Commerce: Denmark vs Finland VAT Rules

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

    CriterionDenmarkFinland
    Standard rate applied25%25.5%
    Registration thresholdDKK 50,000 (~€6,700)€15,000 annual turnover
    Filing frequencyMonthly, quarterly, or biannuallyMonthly or quarterly
    Invoicing constraintsStandard EU requirements. Digital bookkeeping mandatory from 2024. Invoices must reference the Danish CVR number.Standard EU invoice requirements. E-invoicing mandatory for B2G. MyTax portal for online filing.
    Sector-relevant regimesNo reduced VAT rates — 25% applies to almost everything · Mandatory digital bookkeeping · Special rules for non-profit organizationsÅland Islands have VAT exemption for certain goods · Reverse charge for construction services · Real-time economy initiative pushing e-invoicing
    Penalty exposureInterest at the national bank rate + 0.7% per month. Fixed fines for late filing.Late payment interest at the base rate + 7%. Penalty surcharge of up to €5,000 for negligent errors.

    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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