VAT Refund

What is VAT?

All countries and states are entitled to impose taxes on goods. This type of tax is known as an indirect tax. In Denmark, the tax is called VAT (Value Added Tax).

Each country or state determines the applicable rate. In Denmark, VAT is 25% of the price of goods and services.

VAT is added to the price. Goods and services include:

• Physical goods, such as clothing and household items

• Services, such as dental treatment, education and medical procedures

Greenland is one of the very few countries in the world that does not impose VAT. This means that people who live in Greenland and purchase goods outside Greenland may be able to make purchases without paying VAT when they take or send the goods back to Greenland. This is done by obtaining a VAT refund.

If you wish to shop VAT-free, there are a number of requirements you should be aware of:

• You must make sure that the retailer you are buying from offers VAT refunds.

• You must bring your certificate of residence or passport when making your purchase.

• You must obtain a receipt or a Tax-Free Cheque for the goods you have purchased.

• You must provide your name, address and bank details on your receipts or Tax-Free Cheque.

Goods and services not eligible for a VAT refund

Goods and services that are consumed or used outside Greenland are not eligible for a VAT refund. This includes, for example:

• Hotel accommodation

• Holiday home or car rental

• Admission tickets to attractions

Please note that a VAT refund is a matter between the buyer and the seller. The Greenlandic control authorities are only responsible for verifying that the goods have been brought into Greenland.

You can have your receipts or Tax-Free Cheques stamped by the nearest control authority in your home town. Once your receipt or Tax-Free Cheque has been stamped, you must send it to the retailer where you purchased the goods or to the address stated on the back of your Tax-Free Cheque. Remember to keep a copy for your own records.

You can also have your Tax-Free Cheque stamped and receive your VAT refund at Copenhagen Airport.

Please note

The control authority is entitled to inspect the goods for which you are claiming a VAT refund.

In certain circumstances, the control authority / Tax Agency may refuse to stamp your receipts or Tax-Free Cheque. This may, for example, be the case if you are unable to present the goods for inspection or if the deadline has passed.

The deadline for having your receipts and Tax-Free Cheques stamped is no later than three months after the goods were purchased.