Denmark - PricingDenmark - Pricing
- Exporters usually quote c.i.f. Copenhagen prices to Danish importers. The c.i.f. price includes all U.S. domestic freight costs, ocean/air freight and insurance but not Danish import duty or VAT. The rate of import duty typically ranges from 5 to 14% on industrial products. Additionally, the importer must pay a 25% Value Added Tax (VAT) calculated on the sum of the landed (c.i.f.) cost plus the duty. VAT is levied on a non-discriminatory basis to all products and most services sold in Denmark, whether imported or produced locally. There are also heavy surcharges/taxes on a number of “luxury” consumer items, such as cigarettes and tobacco, alcoholic beverages, energy, including oil and gasoline, and automobiles. Despite a 180% levy on the purchase price of an automobile, there are more than two million passenger cars on the Danish roads (roughly one for each household).
- The appropriate price for a product in the Danish market is often best determined through market research. In Denmark, a number of private companies perform market research. The U.S. Foreign Commercial Service Copenhagen can supply contact information on these companies.