11 Denmark | Commentary

Interest

11 Denmark | Commentary

Interest

In addition to the penalties above, SKAT may charge interest on underpaid or overclaimed VAT. The interest is supposed to represent commercial restitution, so it is not normally charged in situations where there is no net loss of VAT and will be for a maximum of three years.

Interest is normally charged where a business:

  1.  

    •     is assessed by SKAT where it is found that the VAT returns understate the true liability;

  2.  

    •     has failed to submit a VAT return and has paid an estimated assessment issued by SKAT which turns out to be too low; or

  3.  

    •     finds an

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