How to Calculate Duties and Taxes on Imports to Denmark involves a clear understanding of EU customs law, which Denmark follows. Import duties and taxes are determined by the product's classification (HS Code), its customs value, and its country of origin. The official authority, Toldstyrelsen (The Danish Customs Agency), enforces these rules. The duty de minimis threshold is approximately DKK 1,150 (based on the EU's €150 limit), but the tax de minimis threshold is DKK 0, meaning the 25% VAT is due on all commercial imports, regardless of value.
Customs duties in Denmark are calculated based on the Common Customs Tariff (CCT) of the European Union (EU). The rate is determined by the product's classification using the 10-digit integrated EU tariff code, known as TARIC (Tarif Intégré Communautaire), which extends the global Harmonised System (HS) codes [cite: 16 in previous search]. The duty rate is applied to the customs value of the goods. For most imports, the customs valuation basis is the CIF (Cost, Insurance, and Freight) value, meaning the duty is calculated on the total cost of the goods, plus the cost of shipping and insurance to the EU border. Trade agreements between the EU and the country of origin can significantly reduce or eliminate the customs duty rate, making the country of origin a critical factor in the calculation.
To accurately calculate import tax in Denmark, you must first determine the dutiable value. The dutiable value is the basis for calculating both the customs duty and the Value Added Tax (VAT). For shipments valued over the duty de minimis threshold of approx. DKK 1,150 (€150), the customs duty is calculated on the CIF value. The duty rate is specific to the 10-digit import classification code (TARIC code) of the product and its origin.
Once the customs duty is calculated, the Danish VAT, which has a standard rate of 25%, is applied. Unlike the duty, the VAT is due on all commercial imports, as the tax de minimis threshold is DKK 0. The VAT is calculated on the total landed cost, which includes the customs value (CIF), the customs duty, and any other applicable charges, such as excise duties.
This calculation process is essential for importers to estimate their landed cost. The new customs declaration system, DMS (Declarations Management System), is being implemented by Toldstyrelsen to manage these declarations electronically, aligning with the EU’s Union Customs Code (UCC) [cite: 2 in previous search]. For businesses looking for an 'import tax calculator Denmark' solution, the formula for the total import cost is: (CIF Value + Customs Duty + Excise Duties) x (1 + VAT Rate). Understanding 'how import duty is calculated in Denmark' is key to compliance and avoiding unexpected costs.
Determine the Customs Value (CIF): Calculate the total value of the goods, plus the cost of international shipping and insurance to the EU border. This is the basis for duty and tax calculation.
Classify the Goods: Identify the correct 10-digit TARIC code for the product to find the applicable customs duty rate and any specific import measures.
Calculate Customs Duty: If the CIF value is over approx. DKK 1,150 (€150), multiply the CIF Value by the duty rate. If the value is DKK 1,150 or less, the duty is DKK 0 (unless the goods are subject to excise duties).
Calculate VAT: Add the Customs Duty (if applicable) and any Excise Duties to the CIF Value. Multiply this total by the standard Danish VAT rate of 25% to find the total import tax (VAT) due.
Low-Value Shipment (Below DKK 1,150): A commercial shipment of DKK 500 (CIF value) is imported. Customs Duty is DKK 0. VAT is DKK 500 x 25% = DKK 125. Total import charges: DKK 125 (VAT is always due).
High-Value Shipment (Above DKK 1,150): A commercial shipment of DKK 5,000 (CIF value) with a 4% duty rate is imported. Customs Duty is DKK 5,000 x 4% = DKK 200. VAT is (DKK 5,000 + DKK 200) x 25% = DKK 1,300. Total import charges: DKK 1,500.
Assuming a VAT de minimis threshold exists: VAT is due on all commercial imports to Denmark (DKK 0 threshold), a common error when calculating import tax in Denmark.
Incorrectly classifying goods: Using an incorrect HS or TARIC code can lead to incorrect duty rates, fines, or delays in the DMS system.
Excluding shipping/insurance from the Customs Value: The duty is calculated on the CIF value, which includes freight and insurance costs for shipments over the DKK 1,150 duty threshold.
Denmark utilises the EU’s Import One Stop Shop (IOSS) for B2C eCommerce shipments valued up to €150 (approx. DKK 1,150). If the seller is IOSS-registered, they collect the 25% Danish VAT at the point of sale, and the goods are fast-tracked through customs without the buyer paying VAT upon delivery. If the seller is not IOSS-registered, the VAT and a customs clearance fee will be collected from the recipient by the carrier or Toldstyrelsen. Additionally, special excise duties apply to specific products, such as alcohol, tobacco, chocolate, and coffee, and these duties are charged regardless of the de minimis thresholds.
The basic formula is: (Customs Value (CIF) + Customs Duty + Excise Duties) x (1 + 25% VAT Rate). The Customs Duty is only applied if the CIF value exceeds approx. DKK 1,150.
Yes, the duty de minimis threshold is approx. DKK 1,150 (€150). Shipments below this value are exempt from customs duty, but not from the 25% VAT.
The standard Value Added Tax (VAT) rate on imports to Denmark is 25%. Denmark does not have a reduced VAT rate, only the standard 25% and a 0% rate for specific goods and services.
Toldstyrelsen uses the CIF (Cost, Insurance, and Freight) valuation basis for calculating customs duty on imports over the de minimis threshold. This means the value includes the cost of the goods, shipping, and insurance.