Statistical processing

Source data

The statistics is based on the Danish Tax Agency’s VAT register. The VAT register contains information on VAT enterprises reports monthly, quarterly or half-yearly. This data is supplemented with background information from CVR.

If enterprises expected annual sales in total (excluding VAT) exceed 50 million Danish kroner, they must report VAT every month. If sales are expected to be between 5 and 50 million Danish kroner the enterprise has to report VAT quarterly and if it is less than 5 million Danish kroner, it must report half-yearly. Statistics Denmark receive data, when the enterprises have reported VAT to the Tax Agency.

Frequency of data collection

Data is collected monthly.

Data collection

Data files are transferred every month from the Tax Agency. The data files contain data with the companies' reported VAT.

Data validation

Data is checked for errors at enterprise level and at industry level. Search for errors is done at enterprise level the current month with last month’s reports and reports same month last year. In the case of large fluctuations, the enterprise is contacted.

Data compilation

In Denmark, enterprises report the value of the VAT they have received on sales or purchases to the Tax Agency. The companies use their SE numbers when they register their report.

In Denmark, the general VAT rate is 25 percent. There are a few exceptions to the general VAT rate, they are listed in §13 of the Danish VAT Act (Momsloven). As the general VAT rate is 25 percent. of sales value, the value of the purchase or the value of the sale is calculated as the reported value multiplied by four. These are the values in the variable domestic purchase or domestic sales.

The sale is registered on the CVR number to which the SE number is linked. Some companies are part of a group that jointly reports VAT. The distribution of sales between these companies is distributed according to the number of employees per CVR number.

Statistics Denmark imputes when no VAT has been reported. The primary reason for the shortfall is when an enterprises report VAT either quarterly or half-yearly. The value is imputed by multiplying the latest reported value by a growth rate calculator. The growth rate is calculated as an average of the current and the last 2 years' growth rates seen from the previous to the current month, quarter or half year, in the industry group the enterprises belong to. For enterprises, that reports VAT quarterly or half-yearly, imputed values are spread over months. This is done by: First, the entire quarter or half year for the enterprise is imputed. Next, the imputed value is distributed over months according to a distribution key. The distribution key is based on reports from enterprises that report monthly. The distribution key is calculated for the 127-industry level (DB07). Values reported quarterly or half-yearly are distributed over months following the distribution key set by the enterprises reporting VAT monthly. The assumption is for the distribution of the values over month for the quarterly or half-yearly reports is the same as for the enterprises reporting VAT monthly.

In the case, an enterprise has not reported for 2 months in a row, the latest imputation is based on the previous imputation. For all reporting types, it applies that there will only be imputed for maximum periods of 2 months/quarters/six months back in time. The imputation is then set to value of 0 DKK. Subsequent declarations, i.e. corrections that enterprises have made for previous periods are distributed over the relevant months. In a similar way, an imputation is removed if the company's business status in the CVR register is registered as inactive. Enterprises whose latest VAT report is negative are imputed with the value 0 DKK to avoid large negative values.

The publication of the statistics is on an aggregated industry level (DB07). The variable "total sales" is seasonally adjusted at the 19- industry level (DB07).

Adjustment

Data is seasonal adjust at two levels: 1) extended 10-industry level (DB07) and 2) the 19-industry level (DB07).

1) The extended 10-industry level (DB07) consists of:

• TOT business.
• In total, excluding energy (B, D and E).
• Agriculture, forestry and fishing.
• Industry, extraction of raw materials and utilities B Extraction of raw materials C Industry (D+E) Energy supply, water supply and renovation.
• Construction.
• Trade and transport etc. G trade, H Transport and I Hotels and restaurants.
• Information and communication.
• Financing and insurance.
• Property trading and letting.
• Business service.
• Public administrations, education and health.
• Culture, leisure and other services.
• Undisclosed activity.

2) The 19 -industry level (DB07) consist of:

TOT, Business in total A. Agriculture, forestry and fishing. B. Raw material extraction. C. Industry. D. Energy supply. E. Water supply and renovation. F. Construction. G. Trade. H. Transportation. I. Hotels and restaurants. J. Information and communication. K. Financing and insurance. L. Property trading and letting. M. Knowledge service. N. Travel agencies, cleaning and other operational services. O. Public administration, defence and police. P. Education. Q. Health and social services. R. Culture and leisure. S. Other services etc. X. Undisclosed activity.

If you want to read more about seasonal adjustment.