Invoicing in Denmark
In Denmark, a VAT invoice is mandatory to claim input tax credit. VAT-registered businesses are required to provide VAT invoices to customers for all taxable supplies, and failure to do so may result in a fine under Section 52(a) of the VAT Act.
However, VAT invoices are not required for exempt supplies within Denmark and exempt insurance and financial services supplied within the EU.
Full VAT invoice
An invoice must contain:
- Invoice number (sequential)
- Date of issue
- Name and address of the supplier
- Registration number of the supplier
- Name and address of the customer
- A clear description of the goods or services
- The VAT rate and VAT base
Additionally, the invoice must display the complete value of Danish VAT in either Danish kroner or euros. However, other amounts on the invoice can be expressed in any currency. In cases where an exemption applies or when the customer is responsible for reporting the VAT, the invoice must clearly indicate that the supply is either VAT-exempt or subject to the reverse charge procedure.
Selling in Denmark?
Electronic & Simplified Invoicing in Denmark
Simplified Invoices
Denmark allows for simplified VAT invoices in specific situations. These include business-to-business (B2B) sales below 3,000 Danish kroner and retailers whose sales are primarily or exclusively business-to-consumer (B2C). In certain B2C sales cases, a till receipt may be considered sufficient. However, if the invoice amount for a service is equal to or exceeds 5,000 Danish kroner, it is always necessary to issue a regular invoice.
A simplified invoice must include specific information, such as:
- Unique sequential identifying number
- Date of issuance
- Details of the supplier, including their name, physical address, and VAT registration number, which is assigned to businesses registered for VAT purposes.
- Description of the goods or services supplied
- Total VAT charged or the percentage of the total amount that constitutes VAT.
Electronic Invoices
According to Article 66 of the VAT Order, electronic invoicing is generally not obligatory in Denmark. However, for business-to-government (B2G) transactions, it is mandatory as stated in BEK no. 206 of March 11, 2011. To send electronic invoices to public entities, there are several options available, including utilizing the PEPPOL network, a third-party invoicing provider, or the Danish government’s NemHandel platform.
When it comes to other recipients, electronic invoices can be transmitted through practical means without any particular validation or reporting requirements. In Denmark, electronic invoicing is primarily voluntary, except for B2G transactions where it is compulsory, and there are specific methods in place to send electronic invoices to public entities.
Last Updated: 27/12/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
