E-invoicing in Denmark (New Bookkeeping Act)

In accordance with the European standard EN 16931 and VAT in the Digital Age (ViDA) proposal, the Danish Tax Administration has encouraged the use of electronic invoices.

Denmark has been a pioneer in e-invoicing and has mandated the use of B2G e-invoicing since 2005. Under the plans of the new Bookkeeping Act, the Danish Business Authority is planning to introduce B2B e-invoicing in phases over the next few years.

Latest News for E-Invoicing in Denmark

The Danish parliament passed a new Bookkeeping Act which is coming into force in January 2024. This will begin new digital reporting obligations and many other changes for companies in Denmark.

• 2005: E-invoices must be sent and received by government authorities and their vendors (B2G transactions).

• January 2024 - January 2026: Implementation period for new reporting obligations and possible B2B e-invoicing.

E-invoicing Requirements

E-invoice format

In the capital city of Copenhagen, only the OIOUBL (Offentlig Information Online - Universal Business Language) format is used. This can be avoided by adding an EAN/GLN number to a Peppol formatted invoice.

Full VAT Invoice for sales value over 5,000 DKK (EUR 670)

• EAN//GLN number

• Invoice issuance date

• Supplier

• Name, address and registration number

• Customer

• Name and address

• Description of the good or service

• VAT rate & VAT base

• Total VAT amount in DKK or EUR

Simplified VAT Invoice

• EAN number

• Invoice issuance date

• Supplier

  • Name, address and registration number

• Description of the good or service

• Total VAT charged or percentage of the total VAT amount

3 ways of sending an e-invoice

1. Manually through a web-based portal

2. ERP solution (software or web-based) such as DDD Invoices with fully integrated e-invoicing

3. ERP solution provided by Danish Operating Authority

NemHandel and the Peppol Network

E-invoices can be transferred via the NemHandel platform or the Peppol network. All public sector organizations are obligated to receive electronic invoices through NemHandel, and many private companies also use the platform. NemHandel is also used as a Service Metadata Publisher (SMP) for Peppol. Still, the Danish government's goal is to eventually phase out NemHandel in order to synchronize with the rest of the EU.

In order to connect to NemHandel, the receiver must be registered with the NemHandel Registry (NHR) in order to have an e-invoice recipient number (GLN/EAN). Then the invoice can be sent in Peppol BIS 3.0 or OIOUBL format. In Denmark, e-invoices are not required to have an e-signature, but they must be stored for 10 years.

The Danish Bookkeeping Act

This new bookkeeping law is laying the groundwork for the future implementation of mandatory e-invoicing for B2B transactions in Denmark. It mandates companies in the B, C, and D accounting classes to have the necessary digital bookkeeping system to digitally report transactions by 1 January 2024. Those in class A will have the same requirement by 1 January 2026.

DDD Invoices: a certified Peppol Access Point

Want to connect to Peppol and don't know how? Here are the benefits of choosing DDD Invoices as your Peppol Access Point:

• Unlock the ability to send and receive e-documents worldwide, without worrying about local compliance issues. Through our API, we automatically fill in your invoice data and send the invoice to the proper authorities, letting you focus on your core business processes and we manage the bureaucracy.

• Seamlessly integrate into your current invoicing system, ERP or CRM in as little as one day. Enjoy an error-free and automated invoicing process through our secure and reliable service.

FAQs for mandatory electronic invoicing in Denmark