About exemption from duty and reimbursement in general
Whether you are registered or not, in certain cases you may be entitled to reimbursement of or a deduction for an excise duty.
Rule exemption for warehouse keepers
Delivery to another registered business in Denmark
As a general rule, taxable goods can be delivered to other tax warehouse keepers without excise duty. Before the goods are consigned, the business must ensure that the consignee is registered or authorised for the excise duty on the goods in question and is thereby entitled to receive taxable goods without excise duty.
To businesses in other EU member states
Taxable goods can be delivered duty-free to businesses in other EU member states. As documentation of delivery, the business must be able to submit:
a copy of the invoice with details of the recipient’s VAT registration number;
a written order, correspondence with the buyer, bank settlement or similar document; and
for EU excise duties – the number of the electronic accompanying document (ARC number).
To businesses in non-EU member states
Taxable goods can be delivered duty-free to countries outside the EU, to the Faroe Islands and Greenland, and to warehouses (but not for consumption) in Copenhagen’s Free Port.
As documentation of delivery, the business must be able to submit:
a copy of the invoice;
a written order, correspondence with the buyer, bank settlement or similar document; and
the reference number from e-Export or the MR number (MRN) from the export accompanying document (EAD).
To authorised businesses
For certain excise duties, the Danish Customs and Tax Administration (Skatteforvaltningen) may authorise exemption from excise duty for goods for industrial or technical use, or for the manufacture of goods that are not taxable under the relevant Act, when the taxable goods are delivered to the business from a registered tax warehouse keeper. This applies, for example, to nitrogenous products for industrial use.
To diplomats
In many cases, taxable goods can be delivered duty-free to diplomatic missions, international institutions, etc. and to the persons associated with them.
The business must ensure that the persons concerned are entitled to benefit from the exemption from customs and excise duties. The business can obtain information about this as required from the Danish Tax Agency.
Fire, burglary or similar
Tax warehouse keepers may apply to the Danish Customs and Tax Administration (Skatteforvaltningen) for exemption from excise duties if taxable goods have been lost:
in a fire or similar event at the tax warehouse keeper’s premises; or
during transport to and from the business.
Returned goods
Registered tax warehouse keepers will generally be exempt from excise duty on returned goods. This is subject to the condition that the business reimburses the full price of the goods, including excise duty, to the customer.
Damaged goods etc.
Registered tax warehouse keepers may apply to the Danish Customs and Tax Administration for exemption from excise duties on goods which, due to their nature, may be damaged or spoiled, such as chocolate and ice cream, including goods that, against reimbursement, have been returned to the business. This is subject to the condition that the goods are destroyed or are made unfit for human consumption by denaturation.
Reimbursement of excise duty
To some extent, the general rules for the reimbursement of excise duty paid correspond to the rules concerning exemption from excise duty.
Reimbursement on the resale of goods
With regard to certain excise duties, the Customs and Tax Administration may grant businesses reimbursement of the excise duty on goods for which duty has been paid, and which are delivered to:
Abroad
Businesses registered as tax warehouse keepers for the excise duty in question
Authorised businesses
Any other businesses which are exempt from excise duties
Diplomatic missions, international institutions, etc. and the associated persons.
Form 29.002 is used for the application. For certain excise duties, applications for reimbursement may only be submitted once a year. Please note that the form is only available in Danish.
Goods that do not match orders, or similar
Consignees may receive reimbursement of the excise duty concerning goods:
that are re-exported;
that might be destroyed due to defects or which do not match the order for other reasons; or
that are obviously delivered by mistake, and are returned.
The business must be able to document that excise duty has been paid on the goods and that the foreign supplier has acknowledged the incorrect delivery or similar with a credit advice or invoice for a replacement delivery, or similar.
Goods for industrial or technical use
Businesses that are not registered as tax warehouse keepers and which use taxable goods for industrial or technical purposes, or for the manufacture of goods which are not taxable under the law may, in certain cases, benefit from excise duty exemption or reimbursement for the goods used.
This may be subject to the condition that the annual reimbursement is a minimum amount.
Reimbursement can normally be achieved by application to the Danish Customs and Tax Administration (Skatteforvaltningen).
For more detailed, comprehensive legal information concerning the reimbursement of or deduction for an excise duty, see our Danish-language legal guide.
