Per Diem

Denmark’s per diem compliance regulations for business travel in 2025 are as follows:

Daily Allowances (Per Diem Rates)

• Meals & Incidental Expenses: The standard per diem for food and small necessities is 597 DKK per day in 2025.
• Accommodation Allowance: The standard untaxed allowance for lodging expenses is 256 DKK per day, provided that the costs are not already covered by the employer​
  skat.dk

Eligibility and Restrictions

• The per diem applies only for business trips lasting at least 24 hours. Employees can claim 1/24 of the daily rate for additional hours beyond the first full day​
  info.skat.dk
• If an employee receives free meals during the trip, the daily allowance must be reduced as follows:
  • Breakfast: 15% reduction (89.55 DKK)
  • Lunch: 30% reduction (179.10 DKK)
  • Dinner: 30% reduction (179.10 DKK)​
    skat.dk
• If an employer reimburses actual expenses (e.g., meals or accommodation via receipts), the employee cannot claim the per diem​
  skat.dk
• Certain professions, such as seafarers and individuals covered by special taxation rules, may not qualify for these standard per diem rates​
  skat.dk

Employer Responsibilities

• Employers must ensure that per diem payments meet legal requirements and do not substitute for salary reductions.
• If a company pays less than the standard per diem rate, employees can deduct the difference as a tax deduction​
  info.skat.dk

These regulations ensure compliance with Denmark’s tax laws while providing fair compensation for business travel expenses. More details can be found on Skat.dk.

Mileage

In Denmark, mileage reimbursement for business-related travel in a private vehicle follows specific tax regulations set by the Danish Tax Authority (Skat). The reimbursement rates for 2025 are:

• DKK 3.81 per km for the first 20,000 km per year driven for business purposes.
  DKK 2.23 per km for distances beyond 20,000 km per year.

These rates apply to self-employed individuals and employees who use their personal cars for work-related travel. The reimbursement is tax-free if it follows the Danish Tax Council’s official rates and is properly documented with a mileage log, detailing the date, purpose, and distance of each trip​

skat.dk

For employees, employers can provide tax-free mileage allowances if they adhere to the official rates and reporting requirements. If the reimbursement exceeds the prescribed rates, the excess amount may be subject to taxation​.

Rates for tax-free driving allowance in 2025:

bm.dk

Paperless

In Denmark, businesses must comply with the Danish Bookkeeping Act for digital record-keeping. Companies with annual turnovers over DKK 300,000 are required to store financial records digitally, ensuring they are accessible for at least five years. Key regulations include:

• Digital invoices and receipts: Must include key details such as the date, transaction type, sender/recipient information (CVR number), VAT amount, and payment details.
• Storage: Digital records must be stored in a registered bookkeeping system or meet strict security standards.

The Danish Business Authority offers further details on this requirement​

danishbusinessauthority.dk

Sales tax rates

Denmark has a standard Value Added Tax (VAT) rate of 25%, which applies to most goods and services. However, certain goods, such as some food items, are subject to reduced rates or exemptions. Businesses registered for VAT may recover VAT paid on business-related purchases by claiming input VAT.

VAT-registered companies must submit VAT returns regularly, either monthly or quarterly, depending on their size. For full VAT guidelines, refer to the Danish Tax Agency​

danishbusinessauthority.dk
danishbusinessauthority.dk TAX RATES