VAT deductions for business expenses
You are entitled to deduct VAT on goods and services you buy for your business, including VAT on workwear or accounting services.
Generally, if your business is registered for VAT, you can deduct all VAT on goods or services you resell or use to run your business. It all depends on the actual goods or services and what you need them for.
If, for example, you buy work clothes for an employee, you will normally pay 25% VAT. But as you are entitled to deduct the VAT in this case, we will refund the VAT after you have filed your VAT return.
You can claim VAT on certain expenses, including the following
Premises and fittings and furniture
- rent (if VAT has been added to the invoice)
- heating, electricity, gas and water for the business
- purchase of and expenses for repair and maintenance of operating equipment, e.g. machinery, tools, fittings and furniture in factory, shop or office
- flowers for decorating restaurants and hair salons
- magazines, trade journals, technical literature, staff and customer magazines, including periodicals. Weekly magazines and periodicals provided by the business as part of its customer service
- Office supplies
Electonic equipment
- mobile phones if the phone can be regarded as operating equipment in relation to the business’s sale of goods and services subject to VAT
- telephone (landline)
Workwear and equipment
- Workwear and uniforms belonging to the business and which the staff wear at work. You can't deduct clothes that you could also use for private purposes.
- Safety equipment
- Computer glasses
Services
- Accounting services
- Cleaning
Advertising
- Advertising items
- Printed advertising material
Machines, tools and vehicles
- Purchase of and expenses for repair and maintenance of operating equipment, including machines, tools, fishing vessels
- Vehicles, including cars, motorbikes and vans - please note that special rules apply. Read more about VAT deductions and vehicles.
Food and accommodation
There are special rules on expenses for food and accommodation. Read more about VAT deductions and food and accommodation.
Energy
Special rules apply to energy taxes, including electricity, water and gas. Read more about VAT deductions and energy taxes.
For further legal information in Danish see our legal guide .