Cross-Border Trade Costs Denmark Over DKK 5bn In Lost Revenue In 2023, Study Finds

By Dayeeta Das
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Cross-Border Trade Costs Denmark Over DKK 5bn In Lost Revenue In 2023, Study Finds

Denmark missed out on over DKK 5 billion (€670 million) in VAT and excise duties as a result of cross-border trade in 2023, according to a new report.

The data includes both VAT and excise duties paid to other countries, such as Germany or Sweden, instead of Denmark.

Cross-border trade in Denmark is valued at DKK 17 billion (€2.28 billion) to DKK 18 billion (€2.41 billion) annually, according to the study, conducted by the trade association De Samvirkende Købmænd (DSK).

It impacts both revenue and job creation in the country, and a 'take home' of border trade could create approximately 4,800 Danish full-time and part-time jobs, especially for young people and the unskilled, DSK noted.

Jannick Nytoft, CEO of DSK, stated, "Border trade has a number of serious consequences for the Danish economy, the labour market and the environment. It is important that we get an accurate picture of these consequences so that we can take the necessary political steps to address them."


Other Findings

Cross-border trade has also contributed to an increase in the consumption of unhealthy products, such as sweets, alcohol and tobacco, a survey has indicated.

The consumption of these products has particularly increased among younger Danes, aged between 18 and 29 years, as a result of cross-border trade, the survey, carried out by Norstat for DSK, showed.

Moreover, border trade also increases environmental and climate impact.

Nytoft added, "Transport to and from border shops results in significant CO2 emissions, as the vast majority of Danes use petrol or diesel cars to shop at the border.

"In addition, the 650 million deposit-free cans purchased at the border pose an environmental challenge, as many of these cans are not recycled and in the worst case end up in nature."

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