On 21 May 2025, the Danish Tax Agency published new guidelines introducing revised administrative practice on the procedure for obtaining VAT refunds in cases involving incorrectly invoiced output VAT.
Previously, a refund of VAT erroneously charged by the supplier and remitted to the DTA could only be granted if the business repaid the VAT amount to the customer, in line with the principle of unjust enrichment.
Under the new practice, this repayment condition has been removed. Businesses are now eligible to apply for a refund of incorrectly invoiced output VAT without reimbursing the customer, provided a credit note or a corrected invoice is issued.
The customer may submit a claim directly to the DTA in cases where it is impossible or unreasonably difficult to recover the amount from the supplier, and where the VAT has been paid to the DTA. However, this option is not available if the DTA has already refunded the VAT amount to the supplier.
The new practice is subject to certain exceptions.
Notably, where a supplier has invoked the statute of limitations to deny a refund to the customer, the DTA will similarly deny the supplier’s claim for a refund.
Furthermore, in situations where issuing a credit note or corrected invoice is not feasible, the DTA will not insist on such documentation as a prerequisite for granting the refund.
Key takeaway
The revised practice simplifies the correction process, reduces administrative and financial burdens, and offers a clearer route to reclaiming VAT that was previously considered irrecoverable.
We recommend that businesses review historical instances of incorrect VAT invoicing to determine whether refund claims may now be pursued under the updated administrative practice.
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