What is momsfradrag (VAT deduction)?

In short

Momsfradrag is the right to deduct VAT on business purchases in the VAT return, so you effectively only pay VAT on your own value added.

In practice

Full deduction requires the purchase to serve VAT-liable activity — and the receipt. Mixed private/business use gives only partial deduction.

Go deeper: Danish VAT for beginners: how VAT works in your business

Related terms

• Købsmoms (input VAT)
• Fradrag (tax deduction)
• See every term in the dictionary

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