On 30 September 2026, the Danish Tax Authority (Skattestyrelsen) announced the results of a nationwide control action targeting social dumping in Central Zealand. Inspections at 13 businesses revealed violations at 11 companies, including non-payment of taxes and VAT. The Authority will conduct follow-up audits to determine the exact amounts owed. This operation is part of an ongoing government crackdown on labor market violations, particularly involving foreign service providers. Companies found non-compliant face back-tax assessments, penalties, and potential criminal proceedings.
Key Takeaways
- Widespread Non-Compliance: 85% of inspected businesses in Central Zealand showed irregularities, indicating systemic issues in sectors relying on posted workers.
- Enhanced Enforcement: Skattestyrelsen will deepen audits on the 11 flagged companies, focusing on undeclared wages, missing VAT registrations, and incorrect A1 certificates.
- Compliance Imperative: Foreign and Danish firms must ensure proper registration, wage reporting, and adherence to collective agreements to avoid retroactive liabilities.
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