Liable representative in Denmark: A guide for foreign companies entering the Danish market

For foreign companies planning to enter the Danish market, an authorised representative can be a good choice. An authorised representative can be crucial in ensuring that your business meets Danish legal requirements and VAT regulations, which can create a smooth and successful market entry. But what is an authorised representative and how can it benefit your business?

What is an authorised representative?

A liable representative acts as the responsible party for a foreign company's tax obligations in Denmark. This means that the representative takes care of correct VAT reporting, payment and other tax-related requirements on behalf of the company. A liable representative may be necessary for businesses that do not have a physical presence in Denmark, an EORI and a VAT number, but still provide goods or services subject to VAT to Danish customers.

Why does your business need an authorised representative?

Denmark requires foreign companies operating in the Danish market to have a liable representative if they supply goods or services that are subject to VAT. This requirement ensures that all players comply with the same tax legislation. A liable representative can help navigate the Danish rules and ensure that your business fulfils its obligations, protecting your business from any fines or sanction risks.

Advantages of having an authorised representative in Denmark

A liable representative not only provides security in terms of regulatory compliance, but can also contribute to:

Optimised processes for VAT and tax reporting

Avoiding administrative errors and fines

A smoother transition to the Danish market

With a liable representative, your company has a partner who understands the Danish requirements and can advise on best practices.

How to choose an authorised representative

For foreign companies, it's important to choose a representative who:

Have in-depth knowledge of Danish tax and VAT regulations

Have experience working with foreign companies

Have a structured and transparent approach to compliance tasks

The right authorised representative can be crucial to ensure a safe and efficient start in the Danish market.

What's next?

Is your company ready to enter the Danish market? DKNO Partners has in-depth knowledge of the Danish VAT and tax system and can assist as a liable representative for your company when entering the Danish market.