One Stop VAT: Making it easier for Danish businesses to compete


One Stop VAT: Making it easier for Danish businesses to compete

A new digital platform makes it easier for Danish businesses to navigate the complicated rules for trade across borders and brings home money to the Danish treasury.

In recent years, online shopping has exploded, and so has cross-border online shopping. Danish citizens receive a growing number of purchases sold by businesses based in other countries, just like a growing number of Danish companies benefit from customers located across Europe.

For customers, buying something from a company in another country is often as simple as a single click, but the businesses face bigger challenges. The tax- and VAT rules governing digital cross-border shopping for customers located in the EU are complicated to navigate. A business selling products to citizens in EU countries would often have to do VAT registrations in each of their customers’ locales and follow the rules of those countries – often not available in English.


A simple solution for a complicated case

A few years ago, the European Union implemented a set of rules to improve the ease of cross-border trade. Instead of registering and paying VAT in several countries, the new rules allow companies to register and pay VAT to a single member state. A so-called One Stop Shop (OSS) number on packages indicates that the VAT has been paid, ensuring that the packages are not held up at customs or unpacked and that customers do not end up with additional bills.

A VAT-platform ensures that all countries get their fair share of the VAT when goods cross borders. In Denmark, Netcompany was tasked with creating the digital platform called One Stop Moms. The new set of rules, and the new platform, ensures a seamless experience for consumers, as businesses can continue to apply their domestic VAT rules for cross-border sales.

»The platform equalizes VAT between the countries of the European Union so that, when trade happens, one country doesn't get all the money«

Kim Clausen Agerskov, Partner Netcompany

»It was a complicated case. We worked closely with tax experts at the Danish Ministry of Taxation, often even from the same office, to make sense of the constant stream of new directives from the EU and navigate the challenging rules and different tax systems«, says Kim Clausen Agerskov.

Better overview – and more money

The new system makes it easier for Danish companies to sell goods to other EU-countries, the rules have become easier to follow, and the harmonization of VAT rules brings home more money to the Danish treasury.

»At the bottom line, this is all about providing companies and countries with a much better overview of VAT. The VAT declarations will become more precise, and the Danish state will be able to collect a bigger and more fair share of VAT for the goods that are traded in the country,« Kim Clausen Agerskov says.

Would you like to know more?

Reach out to

Kim Clausen Agerskov

Partner, Public sector

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