VAT deductions: what can you reclaim — and how much?
Written by Mads Antonsen · bookkeeper at Numina
Published March 31, 2026
As a rule you can reclaim the VAT on your purchases when the expense is used in your VAT-registered business. But some expenses only give a partial deduction — and a few give none at all. Here are the rules you'll actually need.
The main rule: full deduction for business purchases
If a purchase is used solely in your VAT-registered business, you can reclaim all of the VAT: goods, software, rent with VAT, marketing, your bookkeeper and accountant. The requirements are that you hold an invoice as documentation and that the expense genuinely relates to the business's VAT-liable sales.
If you sell VAT-exempt services — such as teaching or healthcare — you conversely have no deduction for the VAT on the purchases tied to them.
Restaurants: 25% of the VAT
VAT on restaurant visits can only be deducted at 25% — and only when the visit is strictly business-related, such as a client dinner or the staff Christmas party at a restaurant. The remaining 75% of the VAT is simply a cost.
Hotels: 100% of the VAT
VAT on business hotel stays in Denmark is fully deductible. But breakfast counts as a restaurant service with only 25% deduction — so always ask for an invoice where the room and the breakfast are itemised separately. If they're lumped into one amount, you risk losing the deduction.
Partial deduction for mixed use
If a purchase is used both privately and in the business — typically your phone and home internet — you can only deduct the share of the VAT that matches the business use. The share is set by a realistic estimate that you must be able to justify.
Cars: white plates are a no
- White-plate car: no VAT deduction on either purchase or running costs — even if the car is used in the business
- Yellow-plate car used solely for business: full VAT deduction on both purchase and running costs
- If you lease a white-plate car for more than 6 months, a specially calculated part of the VAT is deductible — the leasing company states the amount on the invoice
No VAT deduction: entertainment and gifts
Client gifts, flowers, receptions and other business entertainment (repræsentation) give no VAT deduction — however business-related the occasion. The only exception is the restaurant rule above. For income tax, entertainment is still 25% deductible — VAT and tax are two separate rulebooks.
Skip memorising the rules
At Numina, the bookkeeper and the AI put the right VAT code on every document — restaurants, hotels, partial deductions and all the rest — and your VAT is filed with the Danish Tax Agency before the deadline. You just make sure the receipts come in; the rest is included in the fixed price.
The terms behind it, briefly explained
Finally a quick glossary of the terms from this article — brief and concrete, the way we explain them to our customers.
What is omvendt betalingspligt (reverse charge)?
Omvendt betalingspligt (reverse charge) means the buyer — not the seller — must settle the VAT. It typically applies to services bought abroad and certain goods like mobile phones between businesses.
In practice the seller invoices without VAT, and you calculate Danish VAT on the purchase yourself — deductible at the same time if used for VAT-liable activity. A classic place to make mistakes.
What is erhvervelsesmoms (EU acquisition VAT)?
Erhvervelsesmoms is the VAT Danish businesses must calculate themselves when buying goods in other EU countries. The seller invoices without VAT, and the buyer reports 25% Danish VAT on the purchase.
The amount is reported as acquisition VAT on the VAT return and can usually be deducted as input VAT in the same return — net effect zero if the purchase is fully deductible. It requires giving the seller your Danish VAT number.
What is importmoms (import VAT)?
Importmoms is the 25% Danish VAT due when importing goods from outside the EU. It is calculated on the customs value including duty and shipping.
VAT-registered businesses do not pay import VAT at the border — it goes on the VAT return and can normally be deducted as input VAT in the same return. Importing requires an importer registration and an EORI number.
What is EU-salg uden moms (VAT-free EU B2B sales)?
EU-salg uden moms is selling goods or services to VAT-registered businesses in other EU countries, invoicing without Danish VAT — the buyer settles the VAT in their own country.
It requires validating the customer's VAT number (VIES), putting the VAT number and reverse charge wording on the invoice, and reporting the sales separately to the Tax Agency in the EU sales system, on top of the regular VAT return.
Stop keeping track of it all yourself
Numina's bookkeepers and AI handle bookkeeping, VAT and deadlines for you — at a fixed price with no lock-in. The accounting software is included.
Can I deduct VAT without an invoice?
As a rule, no. A VAT deduction requires documentation — normally an invoice with the VAT itemised. A bank statement alone is not enough.
Is there a VAT deduction on the Christmas party?
If you hold it at a restaurant, you can deduct 25% of the VAT. If you hold it in your own premises, there is no VAT deduction on the food — but the expense is still fully deductible for income tax as a staff cost.
What's the difference between a VAT deduction and a tax deduction?
The VAT deduction is the VAT on the purchase, which you offset in your VAT return. The tax deduction is the expense itself, which reduces your taxable profit. Most operating costs give you both — but entertainment, for example, gives only a 25% tax deduction and normally no VAT.
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