Create Invoice for Denmark

Danish invoicing is governed by the Danish VAT Act (Momsloven) and aligns with broader EU regulations, emphasizing transparency and digital readiness. Since 2005, electronic invoicing has been mandatory for all Business-to-Government (B2G) transactions in Denmark, meaning suppliers to public authorities must submit invoices electronically. While there is currently no mandatory Business-to-Business (B2B) e-invoicing requirement for domestic transactions, the landscape is rapidly evolving.

A significant development is the Digital Bookkeeping Act, adopted in 2022, which mandates that businesses use certified digital bookkeeping systems capable of generating and receiving structured electronic invoices. This obligation applies to all private businesses with an annual turnover exceeding DKK 300,000, with compliance required by January 2026, or July 2026 for those using in-house accounting systems. The purpose of this Act is to ensure all accounting processes are handled digitally, rather than imposing a strict B2B e-invoicing mandate.

VAT compliance and registration are crucial. The standard VAT rate in Denmark is 25%, one of the highest in the EU, and applies to most goods and services. Businesses established in Denmark must register for VAT once their taxable turnover exceeds DKK 50,000 within any 12-month period. Foreign businesses generally need to register for VAT from their first taxable sale, without a turnover threshold, unless they utilize the EU's One Stop Shop (OSS) scheme. Non-compliance can lead to penalties, including fines for incorrect information, denial of VAT deductions for clients, and potential legal actions.

To ensure legal compliance and smooth processing, a Danish invoice must contain specific mandatory information, whether it's a standard or simplified invoice. Invoices must be issued within 14 days of the transaction date.

• Seller Information: Full legal name, address, and Danish VAT registration number (CVR number).
• Buyer Information: Full name/company name and address.
• Invoice Number: A unique and sequential number for identification.
• Invoice Date: The date when the invoice is issued.
• Delivery Date: If different from the invoice date.
• Description of Goods or Services: A clear and sufficient description of what was supplied.
• Quantity and Unit Price: The quantity of goods or services and their respective prices per unit, excluding VAT.
• Discounts: Any discounts provided must be clearly shown.
• Total Price without VAT: The net amount.
• Applicable VAT Rate: The VAT rate applied, typically 25%.
• VAT Amount: The total amount of VAT charged.
• Total Price with VAT: The gross amount payable.

A simplified sales invoice can be issued for sales below DKK 3,000 (including VAT) to other Danish companies or up to DKK 5,000 (including VAT) to private consumers. It requires the seller's company name, address, and CVR; invoice number; date; description of goods/services; total price without VAT; VAT amount; VAT rate; and total price with VAT. Regardless of the type, clarity and accuracy are paramount to avoid issues with VAT deductions and potential fines.

Denmark has been a pioneer in e-invoicing, with its national standard, OIOUBL (Open Invoice Business Language), playing a significant role, particularly for B2G transactions. OIOUBL is a customization of the international UBL 2.0 standard, designed to meet Danish business requirements. It has been a mandatory format for invoices sent to public authorities via the NemHandel platform.

However, the e-invoicing landscape in Denmark is currently undergoing a strategic shift. While OIOUBL 2.1 remains an accepted format, the planned OIOUBL 3.0 update was officially cancelled on January 14, 2026. This decision reflects a move away from maintaining parallel national standards towards a single, unified approach that aligns more closely with international standards, specifically Peppol.

Currently, businesses must ensure their digital bookkeeping systems are capable of generating and receiving structured electronic invoices in either Peppol BIS Billing 3.0 (which is compliant with the European Standard EN 16931) or OIOUBL 2.1. These invoices are exchanged through either the national NemHandel platform or the Peppol network. To use these networks, companies must connect their accounting systems to a certified access point that meets required security and interoperability standards.

The cancellation of OIOUBL 3.0 aims to reduce complexity and fragmentation for businesses. Companies should focus on ensuring their systems are compliant with the stricter OIOUBL 2.1 validation rules, which become mandatory in May 2026, while also preparing for the anticipated long-term transition to a single, Peppol-aligned standard.

For businesses engaging in cross-border trade, managing multi-currency invoicing and ensuring compliance with international standards is a critical aspect of invoicing in Denmark. While the Danish Krone (DKK) is the standard currency for invoices, businesses are permitted to issue invoices in other currencies.

When invoicing in a foreign currency, it is legally required to clearly state the exchange rates and currency conversions for VAT reporting purposes. Furthermore, the VAT amount itself should always be expressed in Danish Krone. This ensures that the correct VAT liability can be calculated and reported to the Danish tax authorities, Skattestyrelsen.

Ensuring compliance with international invoicing standards involves adhering to both Danish and EU regulations. The EU's "VAT in the Digital Age" (ViDA) initiative, adopted in 2025, is set to introduce mandatory real-time electronic reporting and structured e-invoices for all cross-border B2B sales within the EU from January 1, 2028. Denmark, as an EU member, will integrate these reforms, and similar digital invoicing rules are expected to extend to domestic transactions between Danish businesses around 2029-2030.

Foreign companies that are VAT-registered in Denmark must also comply with the country's digital bookkeeping requirements if their annual turnover exceeds DKK 300,000 for two consecutive financial years. This includes ensuring their accounting systems are capable of sending and receiving structured electronic invoices in approved formats like Peppol BIS 3.0. Familiarity with tax treaties between Denmark and other countries can also help prevent double taxation in international transactions.