Save 50% on VAT

Applies both to Danish and foreign companies

Rules on VAT on hotel and restaurants are different in every country. In Denmark VAT on hotels is 25%, and there are limitations to the amount which VAT-registered companies can deduct.

It is not possible to deduct VAT on representation expenses, while on business trips it is allowed to deduct 50% of VAT on accommodation costs and 25% of VAT on other expenses (including breakfast, and this also applies when breakfast is included in the price).

The saving in the example is close to 10% of the price. Please note: when the price is inclusive accommodation and breakfast, the amount of VAT which refers to accommodation must clearly appear on the bill/ invoice, otherwise you can not legally use the option for the increased deduction/ refund. All our bills of course meet this legal requirement.

It's actually easier than you might think to calculate the deduction and to apply for a refund, and we have ensured that our bills are very simple and clear. Here you can see a practical example.

Danish companies can very simply input 50% of VAT on accommodation as "purchase VAT" and report this as usual, without further formalities.

Foreign companies must instead fill out a form and send it to the Danish authorities with the relevant documents, after which they will receive a refund directly to their bank account. One just needs to collect and send all bills paid in period (minimum 3 months, max one year). It is only possible to obtain a VAT refund if the application concerns a VAT amount of at least DKK 1,500. If the application only concerns the "rest" of the calendar year, the amount must total at least DKK 200. The amounts in the application must be stated in Danish kroner. Here can you fetch the refund form, and read how to fill it in.