VAT calculator for Denmark
The standard VAT rate in Denmark is 25%. To remove it from a gross price you divide by 1.2500, which is not the same as taking 25% off. Denmark has no reduced VAT rate at all.
%
Price including VAT
125.00
- VAT to add
- 25.00
- Net price behind a gross one
- 100.00
- VAT inside a gross price
- 25.00
- Line total for the quantity
- 125.00
- VAT fraction of a gross price Multiply a gross figure by this to get the VAT directly.
- 0.200 000
- Gross-up multiplier
- 1.250 000
- How far the subtraction method goes wrong
- 6.25
Show the working
- Price excluding VAT = 100
- VAT rate = 25
- Price including VAT = 125
- Quantity = 1
- VAT to add = 100 * 25 / 100 = 25
- Price including VAT = 100 + 25 = 125
- Line total for the quantity = 125 * 1 = 125
- Net price behind a gross one = 125 / (1 + 25/100) = 100
- VAT inside a gross price = 125 - 100 = 25
- VAT fraction of a gross price = (1 + 25/100) > 0 ? (25/100) / (1 + 25/100) : 0 = 0.2
- Gross-up multiplier = 1 + 25/100 = 1.25
- wrong_way = 125 * (1 - 25/100) = 93.75
- How far the subtraction method goes wrong = 100 - 93.75 = 6.25
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- gross = net x (1 + rate)
- net = gross / (1 + rate)
- VAT fraction of a gross price = rate / (100 + rate) = 0.200000
The VAT fraction is the shortcut accountants use: at 25% you multiply a gross figure by 0.200000 to get the VAT straight out.
Rates and reduced-rate categories change by legislation. The rate here is a default; check the current one before invoicing.
Denmark has no reduced VAT rate at all.
Frequently asked
What is the VAT rate in Denmark?
The standard rate is 25%.
How do I remove VAT from a price?
Divide by 1.2500. Subtracting 25% instead undercharges the net figure every time.
Where the numbers come from
- Standard rates as published by the national tax authorities; reduced and zero rates are not modelled.