Glossary
VAT code
The VAT code is the link between the books and the VAT return. It decides whether an entry carries 25 % output VAT, 25 % input VAT, reverse charge VAT or no VAT at all, and where in the return the figure belongs. In Danish it is a momskode.
Updated 21 October 2026
What is a VAT code?
Every entry with VAT gets a code. If you sell a service to a Danish customer, the entry carries the output VAT code, and 25 % of the amount lands on the output VAT account. If you buy office supplies, the entry carries the input VAT code, and the VAT can be deducted. If you buy a service from a supplier in another EU country, the entry carries the code for EU services: the VAT is calculated, reported and deducted at once, and the value is reported in box A.
The VAT return is therefore the sum of the entries' VAT codes. If the code is wrong, the return is wrong, so the code matters as much as the account.
VAT code in Veneti
In Veneti the VAT codes are set up from the start, and every line in the journal carries one VAT code in the VAT cell beside the account. Veneti suggests the code together with the account, and you change it if you disagree. The VAT return is calculated from the codes, field by field after the Danish Tax Agency's boxes, and behind each figure you can see the entries it consists of.
Every code has a direction (sale or purchase), a region (Denmark, the EU or outside the EU) and a field in the return. A code that has been used in the books cannot change field; you create a new one instead. How to read the return: Guide to the VAT return.
Related terms
- Output VAT and input VAT: the two most common codes.
- Acquisition VAT: the code for goods bought in the EU.
- Reverse charge: the code for services from abroad.