Opening a foreign startup in Denmark

Here are some questions that after several years of exposure to Denmark and Europe that I need answers for to a) effectively start a small business based in Denmark, and b) turn a profit. I will update this as I am able to answer each question.

  • What association/resources are available in Denmark to help with questions about starting and operating a small business in Denmark?
  • When opening new business accounts with your local bank what accounts are typically needed (e.g. income, expenses, VAT input, VAT output, etc.)?
  • What reporting is required to SKAT and how often?
  • What is the standard software platform to connect to webshops to expedite business reporting (e.g. MYOB, Xero, etc.)?
  • How is VAT refunded between EU countries?
  • How can moms and/or customs duty be prepaid on purchases from outside the EU?

Update: In October 2015 I left Denmark. Without being able to distribute VAT collected from EU customers I never commenced business operations in Denmark. I will be registering a new business in Germany in March 2017 with the ability to collect and effectively distribute VAT from EU customers.

Here’s what I’ve learnt…

What association/resources are available in Denmark to help with questions about starting and operating a small business in Denmark?

  • Virk Startvækst – Danish start-up resources intended to reduce administrative burdens for businesses.
  • Company registration in Denmark – A small set of videos produced by Virk.dk explaining company registration in English
  • Tax in Denmark – An introduction to the Danish tax system in English produced by SKAT

When opening new business accounts with your local bank what accounts are typically needed

The bank just needs to know your CVR number and will set you up with a simple cheque account. Additional accounts can be linked to your business account opened at any time for income, expenses, VAT collection, etc.

What reporting is required to SKAT and how often?

No idea, find a local accountant who can assist in these matters.

What is the standard software platform to connect to webshops in Denmark?

E-conomic (nice little monopoly there)

How is VAT refunded between EU countries?

You need to register for MOSS (Mini One Stop Shop) via SKAT’s website. It’s aimed at large companies who are able to integrate their e-commerce site into their MOSS platform. Good luck.

How can moms and/or customs duty be prepaid on purchases from outside the EU?

No idea, find a local accountant who can assist in these matters.