Denmark: Denmark Tax Authority Exposes Social Dumping in Copenhagen Businesses

On 4 September 2026, Skattestyrelsen announced the results of a coordinated control action across Greater Copenhagen, uncovering social dumping indicators in 15 companies. The operation targeted sectors with high concentrations of posted workers, including construction, facility management, and transport. Inspectors verified compliance with the Posted Workers Act, VAT registration thresholds, and payroll tax obligations. The Authority will now conduct comprehensive audits to establish the full extent of unpaid taxes, VAT, and labor market contributions.

Key Takeaways

  • Metropolitan Focus: Copenhagen’s dense economic activity attracts non-compliant foreign service providers, necessitating persistent monitoring.
  • Multi-Agency Coordination: The action involved cooperation with the Danish Working Environment Authority and trade unions to assess both tax and labor conditions.
  • Contractor Liability: Danish main contractors may face joint liability for subcontractors’ unpaid taxes under the Tax Collection Act.

Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.

Source: Read Official Announcement