Denmark: Interest surcharges for tax corrections, including for VAT, enacted

Certain provisions have an effective date of 15 June 2022 that will affect companies that have not registered for VAT or have not reported VAT

Certain provisions have an effective date of 15 June 2022

The Danish Parliament (Folketing) passed legislation introducing interest surcharges for “tax corrections” regarding value added tax (VAT) and certain other taxes.

The bill was introduced in May 2022. Read details about the measures in the legislation: TaxNewsFlash

With passage of the bill, certain provisions have an effective date of 15 June 2022 that will affect companies that have not registered for VAT or have not reported VAT. The effective dates for the remaining provisions—and the measures that generally concern interest surcharges imposed on corrections of VAT and other taxes—are to be determined by the Minister of Taxation (with effective dates possibly expected between October 2022 and early 2023). 

KPMG observation

With regard to VAT corrections, an interest surcharge of approximately 30% could apply to corrections relating to the oldest period (that is, 36 months). Pending the determination of the effective dates by the Ministry of Taxation, there may be an opportunity for companies to make corrections without incurring an interest surcharge. The processing of cases by the Danish tax agency does not interrupt the interest calculation; therefore, taxpayers need to consider corrections before October 2022 to avoid application of the interest surcharge measures.

Read a June 2022 report (Danish) prepared by the KPMG member firm in Denmark

 

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