Shipping from the UK to Denmark: VAT, Duty and Landed Cost Explained

Denmark punches well above its weight as a UK export market. Danes have strong purchasing power and a genuine appetite for quality British goods. But Denmark's VAT rate is the joint highest in the EU — 25% — which means the on-delivery charge your Danish customer faces is notably higher than in most other EU countries for equivalent orders.

Post-Brexit: how the UK-Denmark border works now

Before 2021, UK goods entered Denmark as freely as goods moving between two UK cities. Now every parcel from the UK is a third-country import. Danish customs apply the same rules as for goods from any non-EU origin: a declaration is required, duty may be assessed, and VAT is charged on arrival. The hidden costs that surprise many UK sellers shipping to EU customers apply fully in Denmark.

Denmark's VAT rate

Denmark applies a single flat VAT rate of 25% — there is no reduced rate for most consumer goods. This is the highest standard VAT rate in the EU, shared only with Sweden and Hungary. The practical effect is that a Danish customer buying from a UK seller faces a VAT bill roughly a third larger than a German customer buying the same item.

VAT is charged on the total customs value — the product price plus the shipping cost. On a £100 product with £14 shipping, the VAT bill is £28.50 (25% on £114). That comes on top of whatever your customer paid at checkout.

Import duty on UK goods

The UK-EU Trade and Cooperation Agreement gives 0% import duty to goods that genuinely originate in the UK. Most handmade products, crafts, clothing made from UK materials, and other small business goods qualify. Goods manufactured outside the UK and resold without significant UK processing may not qualify and could face standard EU import duty rates.

The €150 threshold in practice

For shipments below €150 (approximately £130), VAT should be collected at the point of sale and the parcel clears Danish customs without an on-delivery charge. If you sell on a platform that handles IOSS (Etsy, for example), this typically happens automatically for eligible orders.

Above €150, Danish customs assess VAT on arrival at the full 25% rate. This is the threshold that trips up many UK sellers — particularly those selling goods in the £80–£160 range where some orders fall under and some fall over the threshold.

A practical example

A UK craft seller ships a set of handmade greeting cards and stationery worth £90 to a customer in Copenhagen.

For an order of this size, a £32 surprise at the door on a £90 purchase is a 36% surcharge. Even for orders technically eligible for IOSS treatment, if the seller isn't registered and the platform doesn't handle it, the charge lands at delivery. Know your IOSS status before shipping to Danish customers. Delivery refusals from EU customers often trace back exactly to this scenario.

A critical geographic note: Denmark is not just Denmark

The Kingdom of Denmark includes Greenland and the Faroe Islands — but neither is a member of the EU or the EU customs union. They have entirely separate customs rules from mainland Denmark.

A parcel addressed to Nuuk (Greenland) or Tórshavn (Faroe Islands) is not an EU shipment. It follows the rules of a shipment to a non-EU territory. EU import duty does not apply, but local import taxes do. Always check whether your customer's address is in mainland Denmark, Greenland, or the Faroe Islands before processing the shipment — and make sure your customs declaration destination is filled in correctly.

What to do before you ship

Calculate your full landed cost including Denmark's 25% VAT rate. ClearShip handles this automatically — enter the product value, weight, and Danish destination address, and it returns the complete cost your customer will face. Add a note to your shop for Danish customers above the €150 threshold explaining that import VAT will be charged on delivery. The transparency prevents the refusal.