Capital
Copenhagen
Currency
Danish krone
Languages
Danish
Population size
5.8M
Average Monthly Salary
€3200
EU
Since 1973
Region
Northern-Europe
Gift Giving Norms
Quality and simplicity valued
Major Corporate Gift Days
Christmas, New Year
Customs Complexity
Low
VAT - Standard Rate
25%
Duty Free Threshold
€80
Ave Duty Rate
2%
1. Employee Merch vs. Gifts
Denmark’s tax laws view non-cash perks or gifts to employees as potential taxable benefits (skattemæssige goder), unless they clearly serve a work-related purpose. The Danish Tax Agency (Skattestyrelsen) outlines these rules, determining whether an item qualifies as part of an employee’s compensation.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Essential Tools & Uniforms
Items essential to job performance—such as branded uniforms, protective equipment, or certain office accessories—are typically not treated as taxable benefits.
Prominent Company Logo
Clothing or accessories bearing a visible company logo that employees are expected to wear or use at work can often be considered tax-exempt, as they reinforce brand identity rather than serving purely personal needs.
Potentially Taxable Benefits
High-Value or Personal Items
Electronics, fashion items, or goods not necessary for daily work might be deemed part of an employee’s taxable salary. The employer would then be liable for associated tax or social contributions.
Repeated Gifting
Frequent small gifts to employees (e.g., monthly deliveries) risk being reclassified as disguised wages. Seek local tax guidance if planning multiple merchandise distributions each year.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Gifts for business relations are often deductible if they serve a legitimate promotional or goodwill purpose. However, very high-value or frequent gifts without clear business rationale can draw scrutiny from tax authorities.
Compliance & Anti-Bribery
Denmark frequently ranks highly for transparency, so avoiding any perception of undue influence is key. Document gift costs and recipients, especially for items given to potential or existing public-sector clients.
1.3 Marketing Merch
Promotional Merchandise
Items distributed at trade shows, conferences, or other public events (e.g., pens, tote bags) can be classified as marketing expenses, provided their main function is advertising the brand. Keep invoices and distribution logs for possible audits.
2. Shipping, Customs & Duties
2.1 Shipping
2.2 Importing
Import Duties & VAT
Goods arriving from non-EU countries may incur customs duties above certain value thresholds, plus 25% Danish VAT on (value + shipping + duties).
Documentation
Accurate commercial invoices, product descriptions, and HS codes are critical for smoother customs clearance.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender covers all import costs upfront, simplifying receipt for the Danish recipient.
Delivered At Place (DAP)
The recipient pays duties/VAT on arrival, which can lead to unexpected bills or delays if not pre-arranged.
2.4 With Monday Merch
Our warehouse in Rotterdam (the Netherlands) ships to Denmark duty-free within the EU. We also advise on VAT processes to ensure your transactions remain tax compliant.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Do uniform distributions get taxed?
If truly needed for work, generally no; personal-use items might be taxed.
Are gifts to clients deductible?
Yes, if they support promotion or relations, but must be well documented and not lavish.
Cultural nuance?
Danes appreciate minimalistic, functional gifts; extravagance is often unwelcome.
