Denmark – New automatic functionality to reconcile amounts declared in the VAT return

From June 2023, the Danish authorities have introduced a new VAT functionality to automatically reconcile the intra EU transactions (sales and acquisitions) included in the VAT return against the amount reported in the European Sales Listing and the information reported in VIES (VAT Information Exchange System) by suppliers in other Member States. It will also reconcile on a yearly basis the amount of VAT-exempt transactions against the amount reported in previous years, to check if there is a significant difference.

The aim is to reduce incorrect reporting and to give the opportunity to taxpayers to immediately correct any discrepancies and/or typos directly when submitting the VAT return.

Another new feature relates to the highlighted final VAT position (VAT payable / repayable) and the different ways of payment now included in the submission receipt of the VAT form, together with a ‘Comments folder’, stating any comment from the VAT authorities on the discrepancies identified, as well as the answers of the taxpayers on each individual remark.