The aid package for VAT is now being extended to small companies

Last week The Minister of Taxation made a proposal to prolong the deadline for reporting and payment of VAT for companies who report on a monthly basis. This assistance is now being extended to the companies who report on a quarterly and semi-annual basis.

Quarterly reporting companies

These companies are now allowed - but not obligated - to combine the VAT returns for Q1 and Q2 2020 and report/pay the VAT no later than 1 September 2020. This means that companies now have an extra three months to report and pay the VAT for Q1 2020.

If VAT due for Q1 is negative, companies do not have to wait to submit VAT. They may submit VAT for Q1 as soon as Q2 starts, and the Danish Tax Agency will deal with these in accordance with the general rules for negative VAT due.

Semi-annual reporting companies

These companies are now allowed - but not obligated - to combine the VAT returns for the whole year 2020 and report/pay the VAT no later than 1 March 2021. This means that companies now have an extra six months to report and pay the VAT for the first half of 2020.

If VAT due for the first half of 2020 is negative, companies do not have to wait to submit VAT. They may submit VAT for the first half of 2020 as soon as the second half of 2020 starts, and the Danish Tax Agency will deal with these in accordance with the general rules for negative VAT due.