Glossary
Reverse charge
Normally the seller adds VAT to the invoice. Under reverse charge the invoice is without VAT, and the buyer calculates the 25 % Danish VAT, reports it as VAT owed in the field for services bought abroad and deducts it as input VAT at the same time. With full deduction it nets to zero, but both figures must go in the return. In Danish it is omvendt betalingspligt.
Updated 21 October 2026
What is reverse charge?
The rule applies to services bought from suppliers abroad: an American software subscription, adverts with Google in Ireland or a consultant in Germany. It also applies to certain goods traded between Danish companies, for example mobile phones and laptops, where the invoice is marked "omvendt betalingspligt". If you sell services to business customers in other EU countries, it works the other way: the invoice is without VAT, marked "reverse charge", and the customer settles in its own country.
Example: an invoice from an Irish supplier for 10,000 kr. without VAT. You calculate 2,500 kr., report it in the field for VAT on services bought abroad, deduct 2,500 kr. as input VAT and report 10,000 kr. in box A, services. Net you pay no VAT, but the return shows the trade.
Reverse charge in Veneti
In Veneti the chart of accounts has an account for VAT on services bought abroad, and the VAT codes for services bought in the EU and outside it calculate the 25 %, report it and deduct it in one go. Veneti suggests the code when a supplier invoice without VAT from abroad lands in the journal, and the VAT return fills the field and box A from the code.
If the company does not have full deduction, the part that cannot be deducted is posted back to the cost account with a general journal entry. The boxes explained: Guide to the VAT return.
Related terms
- Acquisition VAT: the equivalent for goods bought in the EU.
- Output VAT and input VAT: the two sides the rule uses at once.
- VAT code: the code that triggers the calculation.