Denmark - Taxes

[presta-dyr]

VAT is 25% when selling to Danish customers.

VAT must be added to gift wrapping price and handling charges.

The seller may choose not to add VAT for postage if the carrier is PostDanmark. This, however, is only allowed for the postage (no extra costs may be added).

VAT is 25% when selling to other EU countries. The seller may be registered for VAT in the buyer's country in which case the receiving country's VAT rate applies. If the sale exceeds certain limits (EUR 35000 in some countries, 100000 EUR in other) the registration is mandatory.

No VAT is added when selling to countries outside the EU.


/Kjeld

[Matthieu Biart]

Hi Kjeld!

Well thank you for your contribution.
However I have some questions.
What about vouchers? Does your VAT applies?
Is there any extra information needed during the order process, or inside the PDF invoice?

[presta-dyr]

Yes, VAT applies to vouchers. Vouchers have been illegal in Denmark for many years but in the end of 2009 the plan was to make them legal. I'm in doubt if the have become legal yet.

If the total is DKK 100 the VAT amounts to DKK 20 (DKK 80 + 25 % = DKK 100).

If the buyer has a DDK 10 voucher the VAT amounts to DKK 18 (DKK 72 + 25 % = DKK 90).

The invoice is supposed to show price pr. product excl. VAT and the total target to VAT. Since the postage for some carriers (PostDanmark) may be without VAT, the calculation gets a bit complicated.

In my installation I have modified classes/PDF.php to suit my needs. I have attached a picture with an example of the calculation on my invoices.

/Kjeld

[Matthieu Biart]

Hi Kjeld!

Thank you very much for those additional information which are very clear.
Moreover the PDF was a good idea.

[bjarkeml]

According to current Danish law (found on www.retsinformation.dk and www.markedsforingsloven.dk) - vouchers are not legal. So no vouchers in ads are allowed.

Google translation:

§ 10 There should not be given a discount or other benefit by the use of labels, coupons or the like. Which is made available by the operator prior to the purchase of goods or the performance of a service. 1. section. does not apply to service providers established in another EU / EEA country and temporarily provide services in Denmark, where the redemption of rebate coupon happens outside Denmark.
Paragraph. 2. Operators may be the sale of a product or performing a service offer discounts or other benefits in the form of stamps, coupons or the like. to check if each mark clearly with bearing the issuer's name or company, indicating a value in Danish currency. Discount Brand issuer must redeem the label to a value where the marks for an amount to be determined by the Economic and Business Affairs, required redeemed. (see unofficial note 8)

So, in connection with a sale or service the store is allowed to give vouchers for later use under some conditions.

But if the EU changes the regulations doesn't that overrule Danish law? I'm not completely sure..

[cinnabardk]

Some products can be tax exempt. 0% tax.

And it really confuses people if my shop says "tax excluded" for products that are exempt from any tax at all. No tax will be added later, so there is no need for it to say "tax excluded". Particularly not when I have selected "No tax" in the products details.

I am an artist, and I am allowed to sell unique pieces of art, as long as I sell for a value below 300.000 DKK within a period of one year. If the limit of 300.000 within a period of one year is exceeded, I have to pay 1/5 of the normal VAT rate of 25%

I also sell products that are not VAT exempt. These have a normal VAT rate of 25%

It is quite difficult to get my shop set up to handle BOTH VAT-exempt products, and products with VAT included. I am still working on getting it setup correctly.

And if you are just starting out your business (Artist or not), you are allowed to sell for a maximum of 50.000 DKK within a period of one year, without any VAT. If it looks like you will exceed the value, you had better be fast in adding VAT to all your products, and registering for VAT payment with the local tax authority, BEFORE you reach 50.000 DKK. If you sell for 50.001, without VAT, you are doing so illegally.

I very much hope that I will be able to use a future version of Prestashop for my purposes. Thanks for the effort.

Kind regards,
Allan,
Denmark