As from 1 July 2023, the Danish Tax Agency can impose interest on corrections made to VAT returns where the corrections result in a VAT liability. The interest, which is expected to be at a rate of around 8.4% per annum, will be imposed retroactively from the date the original tax payment was due, thus giving rise to a substantial financial burden. Taxpayers that need to revise prior VAT returns should act quickly to avoid potential interest charges, particularly if the corrections will result in additional VAT liability.
Source: BDO
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