EU trade and moms — what you need to know about reverse charge
EU trade is a hidden complexity in Danish moms. When you buy a Google Workspace subscription, use AWS, or buy a software license from Germany — you need reverse charge. Get it wrong and your momsangivelse won't balance. Here's everything you need to know.
What is reverse charge?
Normally the seller pays VAT on a sale. With reverse charge (omvendt betalingspligt) it's reversed: the BUYER reports and 'pays' the VAT. Because you can also deduct it as input VAT, the net effect is zero DKK. Why does this rule exist? It prevents VAT fraud and simplifies cross-border EU trade. Example: you buy a software license for DKK 10,000 from Germany. On the momsangivelse you write: +2,500 salgsmoms (erhvervelsesmoms), +2,500 koebsmoms. Net effect: 0 DKK.
EU goods purchases — Rubrik A varer
When you buy physical goods from other EU countries and provide your CVR to the seller, you get the goods without foreign VAT. YOU report Danish erhvervelsesmoms in Rubrik A goods. The amount is the BASE amount (ex-VAT). Requirements: seller must have valid EU VAT number (verify on VIES), your CVR on the invoice, goods physically transported from another EU country to Denmark.
EU services purchases — Rubrik A ydelser
Services (software, consulting, licences) are handled separately from goods. Reverse charge also applies, but you report the BASE amount in Rubrik A services. Main rule: services are taxed where the buyer is established. So when YOU buy a service from Germany, it's Danish moms that must be reported — by you.
Third country — Rubrik B
Trade with non-EU countries (US, UK, China) is different. Goods from third countries are subject to customs and VAT on import — usually handled by your freight forwarder. Services from third countries (e.g. a US consultant) follow the same reverse charge principle but are reported in Rubrik B. Special rules apply for digital services to EU consumers — you may need to register in EU VAT OSS (One Stop Shop) if your sales exceed EUR 10,000/year.
VIES, EU sales list and Intrastat
Before selling VAT-free to another EU business, VIES-validate their VAT number on ec.europa.eu/taxation_customs/vies. If invalid, charge Danish moms. Monthly/quarterly you must submit the EU sales list with all your EU B2B sales split into goods and services. Above DKK 22M (import) / DKK 11M (export) you also report Intrastat. MomsGate handles all this automatically.
Conclusion
EU trade isn't as scary as it looks. The main rule is simple: if the buyer is VAT-registered in another EU country, don't charge Danish moms — the buyer reports via reverse charge. If YOU are the buyer trading with EU, report erhvervelsesmoms in Rubrikker A and B. With MomsGate all this reporting happens automatically from your e-conomic data, and VIES validation is one click.
Ofte stillede sporgsmol
When do I need to use reverse charge?
When you buy services or goods from another EU business (with valid EU VAT number) and you yourself are VAT-registered in Denmark. You must provide your CVR to the seller.
What happens if I forget to report erhvervelsesmoms?
Your momsangivelse won't balance, and SKAT may open an inquiry. The amount must be entered as both salgsmoms and koebsmoms — net is zero, but both lines are mandatory.
How does VIES validation work?
VIES is the EU central VAT number database. MomsGate automatically checks validity on each EU sale so you know you're entitled to VAT-free sales to that specific customer.
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