Compendium · Europe · Faroe Islands
Faroe Islands: VAT on digital services
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Not supported by the free-threshold API · Local term: VAT
Last verified: 2026-11-03
Foreign businesses with commercial sales of goods/services in the Faroes must MVG-register if annual sales exceed DKK 49,999, appoint a Faroese representative if no PE, and charge 25% MVG; streaming/digital services are actively pursued by TAKS
The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
Spot a mistake in Faroe Islands’s rules?
Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.
Threshold and rates (VAT)
- Free threshold?
- No — The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
- Amount / measure
- —
— - Window
- No threshold window (from the first sale)
- Standard rate
- —
— - Who must register
- DKK 50,000 annual turnover rule for MVG; once registered always charge MVG
- Evidence of location
- TAKS treats foreign commercial sale of goods/services in the Faroes as MVG-liable above threshold; no published multi-piece digital evidence list — OECD default applies
- Invoicing
- Indicative only (unverified). Registered MVG taxpayers issue Faroese MVG invoices under mvg-lógin; simplified B2C field list not verified
- Filing
- —
- Effective
- Region verify 2026-11-03
- Authority
- TAKS Útlendsk virkir — mvg-skráseting
What Botchannels returns
- Ruleset version
2026-10-22.v1- Decision summary
- Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
- Product class
- Digital service
- Support status
- Not supported by the free-threshold API — The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
How to register
- Self-register online?
- See detail — See the authority pages linked in the sources
- Resident representative / fiscal agent
- —
- Regime
- —
Steps (in order)
- —
Documents
—- Official processing time
- — (unverified)
- Official fees
- —
- Portal
- https://www.taks.fo/fo/vinna/vinnuskrain/utlendsk-virkir-i-foeroyum
- Local bank account
- —
- Filing frequency
- —
- Payment currency
- —
- Input VAT recovery
- —
- Portal language
- —
- Penalties
- —
Firms offering this service
No verified provider links for this jurisdiction yet. Prefer the official portal and a locally licensed tax adviser.
Region verify
Facts imported on 2026-11-03. Overall confidence: primary. A field marked indicative is unverified and is not a decision by itself.
| Field | Summary |
|---|---|
| Evidence of customer location | TAKS treats foreign commercial sale of goods/services in the Faroes as MVG-liable above threshold; no published multi-piece digital evidence list — OECD default applies (secondary) |
| Non-resident digital tax | Foreign businesses with commercial sales of goods/services in the Faroes must MVG-register if annual sales exceed DKK 49,999, appoint a Faroese representative if no PE, and charge 25% MVG; streaming/digital services are actively pursued by TAKS (primary) |
| B2C invoice | Registered MVG taxpayers issue Faroese MVG invoices under mvg-lógin; simplified B2C field list not verified (indicative, unverified) |
| Local payment methods | No published place-of-supply rail mapping found (indicative, unverified) |
| Payment provider collects | No marketplace deemed-supplier statute verified; TAKS focuses on supplier registration (indicative, unverified) |
| Seller located in this place | DKK 50,000 annual turnover rule for MVG; once registered always charge MVG (primary) |
Official sources
TAKS Útlendsk virkir — mvg-skráseting
TAKS nær skal man taka mvg — 50.000-reglan
KVF stroymingartænastur mvg
Last verified: 2026-11-03.
FAQ
- Is this tax advice?
- No. This page summarises region-verify notes for foreign digital sellers. It is not tax or legal advice