Denmark Revises Timing for VAT Deductions, Starting July 2025

Denmark’s Ministry of Taxation updated the VAT Executive Order from 1 July 2025, allowing VAT deductions within six months of the invoice date, streamlining deduction timing rules.
The amendment enforces consistent VAT deduction practices for all supplier invoices, including scenarios where deductions occur only after purchase approval, ensuring uniform treatment of transactions.
The changes exclude VAT deduction issues tied to energy taxes or reverse charge on cross-border transactions, while the Danish Business Authority mandates e-invoicing-capable bookkeeping systems from 1 January 2025.