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Essential Elements for Sales Invoices in Denmark

When selling a service or a product to a customer, you must always issue:

USUAL SALES INVOICE

There are three instances where it is necessary to provide a regular sales invoice:

  1. If your customer is a company registered for VAT in Denmark, and the sale, including VAT, is equal to or greater than DKK 3,000.
  2. Even if the sale is less than DKK 3,000 including VAT, you must still provide a regular sales invoice if your customer is a VAT-registered company and requests an invoice.
  3. If your customer is an individual consumer, and the sale, including VAT, exceeds DKK 5,000.

A normal sales invoice includes:

Sales to companies located in EU countries

In summary, if you are selling to a company based in an EU country registered for VAT, you must issue a regular sales invoice and include the customer's VAT number on the invoice. If you're selling without VAT using the EU's reverse charge rules, you should note "reverse charge" on the invoice. You must declare your sales to the EU to SKAT Erhverv every month by the 25th of the following month, and verify that the customer's VAT number is valid. If you fail to verify the validation of the customer's VAT number, you will be responsible for paying the VAT.

Private consumers sales from the EU

In summary, when selling to private consumers who are EU citizens, it is important to issue a regular sales invoice. It's also important to be aware of the current special rules of "Moms One Stop Shop," which took effect on July 1, 2021.

SIMPLIFIED SALES INVOICE

It's possible to issue a simplified sales invoice when:

  1. If your customers are based in Denmark and your sales, including VAT, are below DKK 3,000.
  2. If you sell products or services to individual customers and your total sales, including VAT, are no more than DKK 5,000.

The simplified sales invoice contains the following information as depicted in the infographic:

Mandatory information on standard sales invoices in Denmark (CVR, invoice number, dates, etc.)

In Denmark, sales invoices must contain a specific set of information to be accepted by the Danish Tax Agency (Skattestyrelsen) and to secure your right to deduct input VAT. Missing or incorrect data can lead to rejected VAT deductions and problems during tax audits, so it is important to structure your invoices correctly from the start.

Basic identification of seller and buyer

Every standard sales invoice must clearly identify both the supplier and the customer. As a minimum, the following details are required for the supplier:

For the customer, the invoice should include:

When invoicing Danish private individuals (B2C), a VAT number is normally not available and is therefore not required. However, the name and address of the private customer should still be stated on standard invoices.

Invoice number and numbering sequence

Each invoice must have a unique invoice number. Danish rules require a continuous and chronological numbering system that makes it possible to trace and reconcile all invoices. You can use different number series for different departments, branches or systems, but each series must be:

Invoice numbers may include both digits and letters, as long as the sequence is logical and can be followed during an audit. If you cancel an invoice, you should keep the original number in the sequence and document the cancellation instead of reusing the number.

Dates that must appear on the invoice

Danish sales invoices must show at least the following dates:

The supply date is important for determining the correct VAT period. If the supply takes place over a longer period, you should indicate the period covered (for example, “Supply period: 01.01–31.01”).

Description of goods and services

The invoice must contain a clear description of what has been sold. This description should be detailed enough for Skattestyrelsen to understand the nature of the supply. As a minimum, include:

Generic descriptions such as “services” or “goods” should be avoided. Instead, use wording that reflects the actual supply, for example “Accounting services for March” or “IT consulting – 10 hours”.

Amounts, currency and VAT breakdown

To comply with Danish VAT rules, the monetary information on the invoice must be clearly structured. A standard sales invoice should show:

If you invoice in a foreign currency, you must still state the VAT amount in DKK and use an exchange rate that can be documented (for example, the official rate from Danmarks Nationalbank or your bank’s daily rate). The exchange rate used should be consistent and traceable.

VAT registration and VAT-exempt sales

If your business is VAT registered in Denmark, this must be clearly indicated on the invoice, usually by stating “VAT registered in Denmark” together with your CVR/VAT number. For supplies that are VAT exempt or zero-rated, the invoice must:

This wording is important to justify why no VAT is charged and to avoid issues during a tax audit.

Payment terms and due date

While payment terms are primarily a commercial matter, they also support proper bookkeeping and audit trails. A compliant Danish invoice should normally state:

If you charge late payment interest or reminder fees, the basis for these charges should be described in your general terms and conditions or directly on the invoice.

References and additional identifiers

Many Danish customers, especially larger companies and public institutions, require specific references to process invoices correctly. Although not always mandatory by law, including the following information can be crucial in practice:

For invoices to public sector entities, additional electronic identifiers may be required under NemHandel and e-invoicing rules, but these are covered in a separate section.

Formal requirements for layout and language

Danish law does not prescribe a specific invoice layout, but the information must be clear, readable and logically structured. Invoices may be issued in Danish or English. If you use another language, Skattestyrelsen may request a translation during an audit, so it is generally safer to use Danish or English for business-to-business invoices.

Summary of mandatory elements

To ensure your standard sales invoices in Denmark are compliant, verify that each invoice includes at least:

Implementing these elements consistently will help you avoid problems with Danish VAT, support smooth bookkeeping and make tax audits significantly easier to handle.

VAT requirements and correct VAT wording on Danish invoices

VAT on sales invoices in Denmark is governed by the Danish VAT Act and the EU VAT Directive. To be accepted by the Danish Tax Agency (Skattestyrelsen), an invoice must clearly show how VAT has been calculated and why a particular VAT treatment has been applied. Incorrect or missing VAT wording can result in denied VAT deductions for your customers and assessments during a tax audit.

Standard Danish VAT rate and when it applies

Denmark applies a single standard VAT rate of 25% to most supplies of goods and services. There are no reduced VAT rates (such as 5% or 10%) and no super‑reduced rates. On a standard taxable sale, the invoice must show:

The VAT rate should be indicated as “25% VAT” or “Moms 25%” and the VAT amount must be stated as a separate figure. If different VAT treatments apply on the same invoice (for example, some lines taxable at 25% and some exempt), each line must clearly show the correct VAT rate or exemption status.

Mandatory VAT information on Danish invoices

In addition to general invoice data (invoice number, dates, customer and supplier details), Danish VAT rules require that the following VAT‑related information is clearly stated:

The supplier’s VAT number must be the same number used for filing Danish VAT returns. For foreign businesses registered for VAT in Denmark, the Danish VAT registration number must appear, not the foreign domestic VAT number.

Correct wording for VAT‑exempt supplies

Some supplies are exempt from VAT under Danish law, for example certain financial services, insurance, health care and education. For exempt transactions, no VAT is charged and the invoice should not show a VAT amount. Instead, the invoice should include a clear note explaining the exemption, such as:

Where possible, refer to the relevant provision of the Danish VAT Act or EU VAT Directive (for example, for financial or insurance services). Each exempt line should be marked as “VAT exempt” so that the customer understands that no input VAT can be deducted.

Correct wording for zero‑rated and export supplies

Zero‑rated supplies are taxable but subject to VAT at 0%. This typically includes exports of goods outside the EU and certain international transport services. In these cases, the invoice must not show VAT, but it must explain why the rate is 0%. Common wording includes:

For intra‑EU B2B supplies of goods, both the Danish supplier’s VAT number and the customer’s valid EU VAT number must appear on the invoice. The wording should make it clear that the supply is zero‑rated as an intra‑Community supply and that the customer accounts for VAT in their own country.

Reverse charge wording on Danish invoices

For transactions where the reverse charge mechanism applies, the supplier does not charge VAT. Instead, the customer self‑accounts for VAT in their VAT return. This is common for:

In these cases, the invoice must not show Danish VAT, but it must clearly state that VAT is reverse charged. Recommended wording includes:

For intra‑EU B2B services, the invoice should also show both parties’ VAT numbers and may include a reference such as “Article 196 of the EU VAT Directive” to support the reverse charge treatment.

Invoicing foreign customers and foreign currency

When invoicing foreign customers, the same Danish VAT rules apply if the place of supply is Denmark. If VAT is charged, the VAT amount must always be stated in Danish kroner (DKK) for Danish VAT reporting purposes, even if the invoice is issued in another currency. In practice, many businesses show:

The invoice should indicate which exchange rate source has been used. This helps ensure that the VAT amount reported in the Danish VAT return matches the invoice records.

Language and clarity of VAT wording

Danish VAT law does not strictly require invoices to be in Danish, but Skattestyrelsen must be able to understand the content. For Danish customers, it is common to use Danish terms such as “Moms 25%”, “Momsfritaget” and “Omvendt betalingspligt”. For international customers, it is good practice to include English wording alongside Danish, for example “VAT 25% (Moms 25%)”.

Regardless of the language, the VAT treatment must be unambiguous. Each line should clearly indicate whether VAT is charged, exempt, zero‑rated or subject to reverse charge, and the total VAT must be easy to identify.

Common VAT wording mistakes to avoid

To keep your Danish invoices compliant, avoid the following errors:

Consistent, precise VAT wording on Danish invoices reduces the risk of disputes with customers and challenges from the Danish Tax Agency, and it helps ensure that both parties can correctly report VAT in their returns.

Invoicing private customers vs. business customers (B2C vs. B2B)

In Denmark, the formal invoice requirements are largely the same for private customers (B2C) and business customers (B2B), but the practical approach, level of detail and documentation you should keep differ. Understanding these differences is essential for correct VAT treatment and to avoid problems during a Danish tax audit.

Key legal differences between B2C and B2B invoicing

For B2B sales, the invoice is a core accounting document that must allow the buyer to deduct input VAT. For B2C sales, the invoice mainly documents the sale and VAT charged, but the private customer cannot deduct VAT. This has several consequences:

B2B invoices – what you must pay special attention to

When invoicing Danish or foreign businesses, you should ensure that your invoice supports correct VAT treatment and your customer’s right to deduct VAT:

For B2B customers in the Danish public sector, you must issue an electronic invoice (e‑invoice) via NemHandel in the required format (e.g. OIOUBL or Peppol BIS). Paper or PDF invoices are not sufficient for these customers.

B2C invoices and fiscal receipts

For private customers, Danish law distinguishes between full invoices and simplified invoices or fiscal receipts. The standard VAT rate of 25% applies to most B2C sales of goods and services in Denmark, and the VAT must be included in the price shown to consumers.

For many retail and hospitality businesses, a fiscal receipt from a cash register or POS system is sufficient for B2C sales up to the simplified invoice threshold. The receipt must still show key information such as your business name, CVR number, date, total amount including VAT and, where relevant, the VAT amount or VAT‑inclusive prices per item.

For higher‑value B2C transactions, distance sales or services where the customer needs documentation (for example for insurance or employer reimbursement), issuing a full invoice with all standard invoice elements is recommended, even if the buyer is not a business.

Price display and VAT in B2C vs. B2B

In B2C transactions, Danish consumer protection and marketing rules require that prices shown to private customers are always VAT‑inclusive. This applies to price tags in shops, online prices on webshops and advertising. The invoice or receipt may show the VAT amount separately, but the customer must never be misled about the total price payable.

In B2B transactions, it is common and permitted to quote prices excluding VAT, provided it is clearly indicated (for example “DKK 1,000 excl. VAT”). The invoice then shows the net amount, the VAT amount at 25% and the total amount including VAT. This approach is standard in Danish business‑to‑business contracts and offers.

Customer data and documentation requirements

For B2B invoices, you should collect and verify sufficient customer data to support the VAT treatment:

For B2C invoices and receipts, the requirements are less strict, but you must still be able to document your turnover and VAT correctly in your accounting records. For online B2C sales, keep order confirmations, payment confirmations and delivery documentation together with the invoice or receipt.

Cross‑border B2C vs. B2B sales

When selling to customers outside Denmark, the distinction between B2C and B2B becomes particularly important for VAT purposes:

Practical recommendations for Danish businesses

To manage B2C and B2B invoicing efficiently in Denmark, consider the following practices:

By aligning your invoicing processes with the specific requirements for B2C and B2B transactions in Denmark, you reduce the risk of VAT errors, improve compliance and make it easier for your customers to handle their own accounting and tax obligations.

Electronic invoicing (e-invoices) and NemHandel requirements

Electronic invoicing is now a standard part of doing business in Denmark, especially when you sell to public authorities. Danish rules focus on structured e-invoices that can be read and processed automatically, rather than on PDF files sent by email. For many companies, understanding NemHandel and the technical formats is essential to avoid rejected invoices and delayed payments.

What counts as an e-invoice in Denmark

In Denmark, an e-invoice is an invoice issued and received in a structured electronic format that allows automatic processing. A PDF attached to an email is not considered an e-invoice for public sector purposes. The most common formats are:

Both formats can be sent via the NemHandel infrastructure or through certified service providers that connect to NemHandel or the Peppol network.

NemHandel – the Danish e-invoicing infrastructure

NemHandel is the national infrastructure for exchanging e-invoices and related documents in Denmark. It allows companies to send structured invoices directly to public sector entities and to many private businesses. NemHandel is based on secure, standardised communication and uses unique identifiers to route invoices correctly.

To use NemHandel, your company typically needs either:

Mandatory e-invoicing to Danish public sector

If you sell goods or services to Danish public authorities (state, regions, municipalities and many publicly owned entities), you are generally required to issue electronic invoices. Paper invoices and PDFs are not accepted. The e-invoice must be sent through NemHandel or Peppol and must comply with the technical and content requirements set by the authorities.

Public customers will provide you with the information needed to route the invoice, typically including:

Failure to send a compliant e-invoice can result in the invoice being rejected and payment being delayed until a correct e-invoice is received.

Content requirements for Danish e-invoices

The content of an e-invoice must meet the same legal requirements as a standard Danish sales invoice, including:

For public sector invoices, additional fields may be mandatory, such as order numbers, contract numbers or specific project references. These must be placed in the correct fields of the e-invoice format to be accepted by the recipient’s system.

NemHandel vs. Peppol – choosing the right channel

Many Danish businesses use Peppol as their primary e-invoicing channel, especially when they have customers in other EU countries. Peppol BIS is fully supported by Danish public authorities and integrates with NemHandel, so invoices sent via Peppol can still reach Danish public entities.

When setting up your invoicing system, you should ensure that:

VAT and legal compliance in e-invoices

Electronic invoices must comply with Danish VAT law in the same way as paper invoices. This means that:

From a tax audit perspective, the tax authorities will look at both the human-readable view and the underlying XML data. Inconsistencies between them can cause problems during a VAT inspection.

Archiving and data retention for e-invoices

Danish rules require businesses to keep accounting records, including invoices and e-invoices, for at least 5 years. For e-invoices, you must store:

The data must be stored in a way that ensures integrity, readability and accessibility for the entire retention period, including during a tax audit. If you use a cloud-based accounting or e-invoicing system, you should confirm how long data is retained and how you can export it if needed.

Practical steps for businesses in Denmark

To stay compliant and efficient with e-invoicing in Denmark, most companies should:

With the right setup, electronic invoicing reduces manual work, speeds up payments and ensures that your Danish invoices meet both legal and technical requirements.

Currency, language and exchange rate rules on Danish invoices

When issuing sales invoices in Denmark, the rules on currency, language and exchange rates are set by Danish VAT law and the Danish Tax Agency (Skattestyrelsen). Even though there is some flexibility, incorrect presentation of amounts or missing DKK equivalents can lead to problems during a tax audit. Below is an overview of what businesses should consider when invoicing Danish and foreign customers.

Currency on Danish sales invoices

Danish invoices may be issued in any freely convertible currency, for example DKK, EUR, USD or SEK. However, Danish VAT must always be determinable in Danish kroner (DKK). This means that:

For domestic supplies in Denmark, it is considered best practice to invoice in DKK, especially for B2C customers, to avoid disputes about conversion and rounding.

Language requirements for Danish invoices

Danish VAT rules do not prescribe a single mandatory language for invoices. In practice, invoices may be issued in Danish, English or another language commonly used in international trade. However, the tax authorities must be able to understand the content during a control. Therefore:

Key invoice terms such as “invoice”, “credit note”, “VAT”, “reverse charge” and descriptions of goods and services should be clear and unambiguous. Using standard English terminology reduces the risk of misinterpretation.

Exchange rate rules for invoices in foreign currency

When an invoice is issued in a foreign currency, the Danish VAT amount must be calculated using an exchange rate that is acceptable to Skattestyrelsen. The following principles apply:

It is not mandatory to show the exchange rate on the invoice, but it is strongly recommended. If the VAT amount is shown only in foreign currency, the invoice should clearly state the rate used to convert to DKK so that the DKK VAT can be reconstructed during a tax audit.

How to present VAT and totals when using foreign currency

To ensure compliance and clarity, a Danish invoice in foreign currency should normally contain:

For bookkeeping and VAT return purposes, the transaction must be recorded in DKK in the accounting system, using the same exchange rate method as applied on the invoice.

Special considerations for e‑invoices and public sector customers

When invoicing Danish public authorities via electronic invoicing (NemHandel / OIOUBL / Peppol), the technical format requires amounts to be stated in a single currency. Public customers typically expect invoices in DKK. If a contract is denominated in another currency, the supplier must ensure that the e‑invoice still complies with the DKK and VAT requirements and that the exchange rate used is documented.

Practical recommendations for Danish businesses

To avoid issues with Danish VAT control and to simplify internal processes, businesses should:

By following these rules and best practices, Danish invoices remain compliant, transparent and easier to defend in the event of a tax audit.

Credit notes and correcting errors on issued invoices

Credit notes are a key tool in Danish invoicing for correcting mistakes on already issued sales invoices. They ensure that your revenue, VAT reporting and customer balances remain accurate and compliant with Danish bookkeeping and VAT rules.

When a credit note is required

You should issue a credit note whenever an original invoice needs to be reduced or cancelled, for example when:

In Denmark, you normally do not delete or overwrite an issued invoice. Instead, you keep the original invoice in your records and issue a credit note that reverses it in full or in part.

Mandatory content of a credit note in Denmark

A credit note must contain essentially the same mandatory information as a standard sales invoice, including:

The credit note must clearly indicate that it is a credit note and not a new sales invoice. The reference to the original invoice is crucial for audit trails and for demonstrating correct VAT adjustments to the Danish Tax Agency (Skattestyrelsen).

Correcting VAT on credit notes

When you issue a credit note, you must adjust the VAT in the same way and with the same VAT rate as on the original invoice. For example:

VAT corrections are normally reported in the VAT period in which the credit note is issued, not by changing past VAT returns. However, if a significant historical error is discovered, you may need to correct previous VAT returns in line with Skattestyrelsen’s rules on retroactive adjustments.

Full vs. partial credit notes

A full credit note cancels the entire original invoice. In this case, the credited net amount and VAT amount equal the amounts on the original invoice, but with opposite sign in your accounting records.

A partial credit note is used when only part of the invoice is wrong or when only some goods are returned. The credit note then covers only the relevant lines or quantities. It is important that the description on the credit note makes it clear which part of the original invoice is being reversed.

Practical handling in accounting systems

In Danish bookkeeping, credit notes should be recorded using the same accounts as the original invoice, but with reversed amounts. This ensures that:

Most Danish accounting and invoicing systems allow you to generate a credit note directly from the original invoice. This helps maintain a clear link between the documents and reduces the risk of errors in VAT and revenue recognition.

Correcting errors without a credit note

Minor technical errors that do not affect the taxable amount or VAT, such as a spelling mistake in the description or a missing internal reference, can sometimes be corrected by issuing a new, corrected invoice copy clearly marked as a correction, while keeping the original invoice in your records. However, if the error affects the price, VAT rate, VAT amount, customer identity or tax point, a formal credit note is normally required.

Timing and documentation requirements

Credit notes should be issued as soon as you become aware of an error or a change in the underlying transaction. Delaying the issue of credit notes can lead to incorrect VAT reporting and potential interest or penalties during a Danish tax audit.

You must keep both the original invoice and the related credit note for the full statutory retention period for accounting records in Denmark, and they must be easily traceable to each other. This applies equally to paper invoices and to electronic invoices issued via NemHandel or other e‑invoicing solutions.

Impact on B2B, B2C and cross‑border transactions

For B2B transactions within Denmark and the EU, the credit note must reflect the correct VAT treatment and, where applicable, the customer’s VAT number and reverse charge wording. For B2C sales, the credit note still needs to show the VAT amount and VAT rate, even if the customer does not use the document for VAT recovery.

For exports outside the EU or other zero‑rated supplies, the credit note must maintain the same zero‑rating basis as the original invoice and should be supported by the same type of documentation (for example, proof of export) to justify the VAT treatment in case of a tax audit.

Archiving and retention rules for invoices in Denmark

In Denmark, businesses are subject to strict rules on how long they must keep invoices and in what form. Proper archiving is essential both for VAT compliance and for corporate tax purposes. Non‑compliance can lead to assessments based on estimates, fines and problems during a Danish tax audit.

Minimum retention period for invoices

Danish businesses must generally keep all accounting records, including sales invoices, purchase invoices and credit notes, for at least 5 full financial years after the end of the financial year to which the documents relate. This 5‑year period applies regardless of whether the invoice is issued to a Danish or foreign customer and regardless of the invoice amount.

The retention obligation covers:

Format: paper vs. electronic storage

Danish rules allow invoices to be stored either on paper or electronically. It is not necessary to keep the invoice in the same format in which it was originally issued, as long as the archived version contains all mandatory information and is fully legible.

Key points for invoice formats:

Requirements for electronic archiving systems

If you store invoices electronically, the system must ensure the authenticity of origin, integrity of content and legibility of the invoice for the entire retention period. In practice, this means:

Using cloud‑based accounting or invoicing software is acceptable, provided the provider can guarantee secure storage, data integrity and access for Danish tax authorities upon request.

Storage location: in Denmark or abroad

Invoices and accounting records do not always have to be physically stored in Denmark, but certain conditions apply if you store them abroad:

Special rules for e‑invoices to public authorities

Invoices issued electronically to Danish public authorities via NemHandel or Peppol (OIOUBL or Peppol BIS formats) are subject to the same 5‑year retention period as other invoices. The business must keep a copy of the e‑invoice and any related message status (for example delivery confirmation) in a way that allows the invoice to be reproduced and presented during a tax audit.

Content that must be preserved

The archived invoice must contain all mandatory invoice details required under Danish VAT law, including:

When invoices are scanned or converted, all of this information must remain visible and unchanged.

Archiving credit notes and corrections

Credit notes, corrected invoices and any documentation explaining the reason for a correction must be archived together with the original invoice or in a way that clearly links them. This is important to demonstrate the history of changes and to justify any adjustments made in VAT returns or corporate tax calculations.

Access for Danish tax authorities

During a VAT or tax audit, the Danish Tax Agency can request access to your invoices and supporting documentation. You must be able to:

Failure to provide invoices or to document transactions properly may result in the tax authorities estimating your VAT and income, which can lead to additional tax, interest and penalties.

Practical best practices for Danish invoice archiving

To comply with Danish archiving and retention rules and to be prepared for audits, businesses should consider:

Well‑structured invoice archiving not only ensures compliance with Danish law but also makes it easier to manage cash flow, handle customer disputes and respond efficiently to any queries from the Danish Tax Agency.

Reverse charge mechanism on invoices (domestic and cross‑border)

The reverse charge mechanism shifts the obligation to account for VAT from the supplier to the customer. In Denmark, this affects both domestic transactions and cross‑border supplies within the EU, and it has a direct impact on how you issue and word your invoices.

When the reverse charge applies in Denmark

The reverse charge mechanism is relevant mainly in the following situations:

Mandatory wording on reverse charge invoices

Whenever reverse charge applies, the invoice must clearly state that the customer is liable for VAT. In practice, Danish businesses typically use one of the following phrases:

The wording should appear close to the line items or in the summary section of the invoice so that it is clearly visible during a Danish tax audit.

Key invoice details for reverse charge supplies

In addition to the standard Danish invoice requirements (invoice number, dates, supplier details, description of goods or services, etc.), reverse charge invoices must include:

Domestic reverse charge: construction and building services

For many construction and building services in Denmark, the customer is liable for VAT when both parties are VAT‑registered businesses. In this case:

It is important to classify the service correctly. If the service falls under the construction reverse charge rules and VAT is charged incorrectly on the invoice, the supplier may still be liable for the VAT, while the customer may be denied deduction.

Cross‑border B2B services within the EU

For most B2B services supplied from a Danish business to a VAT‑registered customer in another EU country, the place of supply is the customer’s country. The Danish supplier should:

The foreign customer accounts for VAT in their own country at the local VAT rate and, if eligible, deducts it as input VAT.

Intra‑EU supplies of goods

When a Danish VAT‑registered business sells and ships goods to a VAT‑registered customer in another EU country, the transaction is normally treated as a zero‑rated intra‑EU supply. On the invoice:

The Danish supplier must be able to document that the goods left Denmark (for example with transport documents) and must report the sale in the EC Sales List. The foreign customer applies the reverse charge in their own VAT return.

Purchases of services from abroad by Danish businesses

When a Danish VAT‑registered business buys services from a supplier established abroad (EU or non‑EU), the Danish customer usually has to apply the reverse charge in Denmark. In this case:

Although the foreign supplier’s invoice does not follow Danish formal invoice rules, Danish companies should still ensure that the invoice contains enough information to document the transaction and the basis for the reverse charge in case of a Danish tax audit.

How to show reverse charge amounts in your accounting

From an accounting perspective, reverse charge transactions must be recorded so that:

Many Danish accounting systems have dedicated VAT codes for domestic construction reverse charge, intra‑EU services, intra‑EU goods and purchases from abroad. Using the correct VAT code is essential to ensure that your invoices and VAT reports are consistent.

Common mistakes and risks

Typical errors related to the reverse charge mechanism include:

Such mistakes can result in additional VAT assessments, interest and penalties in Denmark. Ensuring that your invoices are correctly worded and that the reverse charge is applied only when the legal conditions are met is therefore crucial for compliance.

Invoices for exports outside the EU and zero‑rated supplies

Exports of goods and certain services from Denmark can be invoiced with 0% Danish VAT when specific conditions are met. Correctly documenting and presenting these zero‑rated supplies on your invoices is essential to avoid VAT assessments during a Danish tax audit.

When exports can be invoiced with 0% VAT

In Denmark, the standard VAT rate is 25%. However, you must apply a 0% VAT rate (zero‑rating) in the following main export situations:

Zero‑rating is never automatic. You must be able to prove that the legal conditions for 0% VAT are fulfilled.

Mandatory invoice information for exports outside the EU

For exports of goods to non‑EU countries, the invoice must contain all standard information required for Danish sales invoices (such as supplier’s CVR number, invoice date, unique invoice number, customer details, description of goods or services, quantity and price). In addition, the following export‑specific elements are crucial:

Documentation required to support 0% VAT

To keep the 0% VAT treatment, Danish businesses must keep robust documentation proving that the goods have actually left the EU or that the service is taxable abroad. Typically, this includes:

These documents must be stored together with the invoice and be easily available in case of a control by the Danish Tax Agency (Skattestyrelsen). If you cannot provide sufficient documentation, the 0% VAT may be rejected and 25% Danish VAT can be assessed on the transaction.

Zero‑rated exports vs. exempt supplies

Zero‑rated exports and other zero‑rated supplies differ from VAT‑exempt activities in Denmark. For zero‑rated supplies:

For VAT‑exempt activities (such as certain financial or health services), no VAT rate is shown, the turnover is reported as exempt, and the right to deduct input VAT is limited or lost. It is therefore important to classify your exports correctly as zero‑rated supplies, not as exempt sales.

Invoicing zero‑rated services to foreign customers

When you supply services to customers outside Denmark, you must determine the place of supply under Danish VAT rules. If the place of supply is outside Denmark and the service is taxable abroad, your invoice should normally:

For B2B services to EU customers, the reverse charge rules usually apply, and you must include the customer’s valid EU VAT number and appropriate reverse charge wording. For B2B services to non‑EU customers, you should document that the customer is a business established outside the EU.

Currency and exchange rate for export invoices

Export invoices can be issued in foreign currency such as EUR or USD. However, for Danish VAT reporting you must convert the invoice amount into DKK using an acceptable exchange rate, for example:

Even though 0% VAT is applied, the DKK value of the export turnover must be correctly reported in your Danish VAT return.

Common mistakes and risks for Danish exporters

Typical issues identified during Danish VAT audits include:

Such errors can lead to assessments of 25% VAT on the full invoice amount, plus interest and potential penalties. Proper invoicing, documentation and classification of exports and other zero‑rated supplies are therefore crucial for Danish businesses trading internationally.

Invoicing for mixed supplies (different VAT rates on one invoice)

Invoices in Denmark often include more than one type of supply – for example, standard‑rated services, zero‑rated exports or VAT‑exempt financial services on the same document. In these cases, the Danish VAT rules require that each type of supply is clearly separated and that the applicable VAT treatment is transparent for the customer and for the Danish Tax Agency (Skattestyrelsen).

Different VAT rates and VAT treatments in Denmark

Denmark applies a single standard VAT rate of 25% on most goods and services. However, on one invoice you may have:

Each of these categories must be identifiable on the invoice, with the correct VAT rate or a clear indication that no Danish VAT is charged and why.

How to structure an invoice with mixed supplies

When you issue an invoice that contains items with different VAT treatments, you should group and present them in a way that makes the VAT calculation easy to follow. A practical approach is to:

This structure helps ensure that the invoice meets Danish formal requirements and that both parties can easily reconcile the VAT amounts with their bookkeeping.

Mandatory information for each VAT category

For mixed supplies, the general mandatory invoice information still applies (such as invoice date, sequential invoice number, seller’s and buyer’s details, seller’s CVR number, and payment terms). In addition, you must ensure that:

Typical wordings for lines without Danish VAT include, for example, “VAT exempt under Danish VAT Act”, “0% VAT – export outside EU” or “Reverse charge – customer liable for VAT”. Using clear wording reduces the risk of questions during a Danish VAT audit.

Examples of mixed supplies on one invoice

Common situations where Danish businesses issue invoices with mixed VAT treatments include:

In each case, the invoice must allow the tax authorities to see exactly which lines are taxed at 25%, which are zero‑rated, which are exempt and which are subject to reverse charge.

Zero‑rated vs. VAT‑exempt lines

It is important to distinguish between zero‑rated and VAT‑exempt supplies on mixed invoices. Zero‑rated supplies are taxable at 0%, which generally allows the supplier to deduct input VAT on related costs. VAT‑exempt supplies are outside the scope of VAT deduction, meaning that input VAT on related purchases is often not recoverable.

On the invoice, you should therefore:

This clarity supports correct VAT reporting and helps avoid disputes about input VAT deduction.

Mixed supplies and VAT reporting in Denmark

When you report VAT in Denmark, the figures from invoices with mixed supplies must be split correctly in your VAT return. You need to separate:

If invoices are not structured clearly, this split becomes difficult and increases the risk of errors in your Danish VAT return. Properly designed mixed invoices make it easier to extract the correct amounts from your accounting system.

Practical tips to avoid mistakes

To ensure compliance when invoicing mixed supplies in Denmark, businesses should:

Well‑structured invoices with mixed supplies reduce the risk of additional VAT assessments, penalties and interest during Danish tax audits and help maintain a clear audit trail in your accounting records.

Requirements for invoices issued by online platforms and webshops

Online platforms and webshops selling to Danish customers must comply with the same core invoicing rules as any other business in Denmark, but there are additional practical and legal points to consider. This applies whether you run your own webshop, sell via marketplaces (for example, as a third‑party seller), or provide digital services and subscriptions.

Who is responsible for issuing the invoice?

The legal obligation to issue a compliant invoice normally lies with the supplier of the goods or services – the business that is party to the contract with the customer. In practice, this can be:

Platform terms and conditions should clearly state who is the supplier and who is responsible for invoicing and VAT. The name, address and Danish CVR number (or foreign VAT number, where relevant) shown on the invoice must match the entity that is legally responsible for the sale.

Mandatory invoice content for webshops

Invoices issued by webshops and online platforms must contain all mandatory elements required for standard Danish sales invoices, including:

For online sales, product descriptions on the invoice should match the descriptions used in the webshop order confirmation so that the transaction can be easily traced during a Danish tax audit.

Digital invoices and electronic delivery

Webshops typically issue invoices electronically, for example as PDF files or system‑generated invoices accessible via a customer account. In Denmark, electronic invoices are fully valid if they contain all mandatory information and can be stored and reproduced in an unaltered form.

For B2B sales to Danish public authorities, invoices must be issued as electronic invoices through NemHandel in the OIOUBL format. Many private B2B customers also request e‑invoices via NemHandel or other structured formats; in such cases, the content requirements remain the same, but the technical format must follow the agreed standard.

VAT treatment of online sales

Webshops must apply the correct VAT treatment depending on the type of customer and place of supply:

Online platforms and webshops must ensure that their checkout systems correctly determine the customer’s status (business or consumer), location and applicable VAT rate, and that this is reflected consistently on the invoice.

Platform and marketplace models

Where a platform is deemed to be the supplier for VAT purposes (for example, in certain cross‑border B2C scenarios under EU e‑commerce rules), the platform must issue the invoice in its own name and account for VAT. The invoice should not show the third‑party seller as the supplier in such cases, although the seller’s details may be added for commercial reasons.

If the platform only acts as an intermediary, the third‑party seller remains responsible for issuing the sales invoice to the customer, while the platform issues a separate invoice or statement to the seller for its commission or service fees, with Danish VAT at 25% where applicable.

Online payment, fees and refunds

Invoices issued by webshops should clearly show:

When a sale is cancelled, goods are returned or a price is adjusted, the webshop must issue a credit note that clearly refers to the original invoice number and corrects the VAT accordingly. For online sales, credit notes are usually also issued electronically and must be stored together with the original invoice and order documentation.

Record‑keeping and audit trail

Danish rules require invoices and related accounting records to be stored for a minimum of 5 years. For webshops and platforms this typically includes:

Systems should allow the tax authorities to trace each transaction from the order placed online, through payment and delivery, to the final invoice and accounting entry. Any changes to invoices (for example, corrections via credit notes) must be clearly documented.

Practical compliance tips for Danish webshops

To reduce VAT risks and ensure compliant invoicing, online platforms and webshops should:

Properly structured and compliant invoices are essential for online businesses operating in Denmark, both to secure the right VAT treatment and to withstand potential Danish tax audits.

Consequences of non‑compliant invoices during Danish tax audits

Non-compliant sales invoices are one of the most common triggers for adjustments during Danish tax audits. The Danish Tax Agency (Skattestyrelsen) checks invoices in detail to verify that VAT, income and expenses have been reported correctly. If invoices do not meet the formal and material requirements in the Danish VAT Act (momsloven) and Bookkeeping Act (bogføringsloven), the consequences can be both financial and administrative.

Loss of VAT deduction and VAT adjustments

For B2B purchases, a valid VAT invoice is a basic condition for deducting input VAT. If an invoice is missing mandatory information (for example the supplier’s CVR number, invoice date, continuous invoice number, correct VAT amount or buyer identification), Skattestyrelsen may deny the VAT deduction in full or in part.

During an audit, the tax authorities can:

Where invoices are corrected and reissued in a compliant form, Skattestyrelsen may accept the VAT deduction, but this is not guaranteed and often depends on whether the underlying transaction can be clearly documented.

Taxable income adjustments for companies and sole traders

Incorrect or incomplete invoices can also affect corporate tax and personal income tax. If sales are not properly invoiced, Skattestyrelsen may:

In serious cases, the tax authorities can make a discretionary assessment of income (skønsmæssig ansættelse) if bookkeeping and invoicing are considered unreliable. This often leads to significantly higher taxable income than reported by the business.

Interest and surcharges on underpaid VAT and tax

If non-compliant invoices result in underpaid VAT or tax, Skattestyrelsen will charge interest and may impose surcharges. Key consequences include:

These amounts are not tax-deductible, which increases the overall cost of non-compliance.

Administrative fines for invoicing and bookkeeping breaches

Breaches of the Danish Bookkeeping Act and VAT invoicing rules can lead to administrative fines. Fines are typically imposed when:

The size of the fine depends on the seriousness, duration and scope of the violations, as well as the company’s size and previous history. Repeated or deliberate breaches usually result in higher penalties.

Criminal liability in cases of serious non-compliance

If Skattestyrelsen considers that incorrect invoicing has been used deliberately to evade VAT or tax, the case can be referred for criminal investigation. Potential outcomes include:

Risk factors include the use of false invoices, fictitious suppliers or customers, double invoicing, and the systematic use of cash sales without proper receipts or fiscal documentation.

Issues with customers, suppliers and public authorities

Non-compliant invoices can also create practical and commercial problems:

This can damage business relationships and delay payments, affecting cash flow and reputation.

Increased audit risk and closer monitoring

Once Skattestyrelsen identifies significant invoicing errors, the business is more likely to be selected for future audits. The tax authorities may:

For companies with repeated issues, the authorities may also coordinate checks with other agencies, for example in relation to payroll, withholding tax or social contributions.

How to reduce the risk during a Danish tax audit

To minimise negative consequences during an audit, Danish businesses should:

Well-structured and compliant invoicing significantly reduces the risk of VAT adjustments, fines and disputes with Skattestyrelsen, and makes tax audits faster and less disruptive for the business.

FISCAL RECEIPT

If you primarily sell to individual customers and use a point of sale system that is capable of printing receipts, you have the option to print receipts instead of using a simplified sales invoice.

Carrying out serious administrative procedures requires caution – mistakes can have legal consequences, including financial penalties. Consulting a specialist can save money and unnecessary stress.

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