Essential Elements for Sales Invoices in Denmark
When selling a service or a product to a customer, you must always issue:
- A regular sales invoice
- A simplified sales invoice
USUAL SALES INVOICE
There are three instances where it is necessary to provide a regular sales invoice:
- 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.
- 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.
- If your customer is an individual consumer, and the sale, including VAT, exceeds DKK 5,000.
A normal sales invoice includes:
- The name, address, and CVR (company registration) number of the seller's company.
- The name and address of the buyer's company.
- An invoice number, which is a unique identifier for the invoice.
- The date on which the invoice was issued.
- If the delivery date is different from the invoice date, it should also be included.
- A description of the product or service being sold.
- The price per item or unit, excluding VAT.
- Any discounts that have been granted.
- The total price, excluding VAT.
- The VAT rate that has been applied (e.g., 25%).
- The amount of VAT that is being charged.
- The total price, including VAT.
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:
- If your customers are based in Denmark and your sales, including VAT, are below DKK 3,000.
- 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:
- The name, address, and CVR (Central Business Register) of the seller's company.
- An invoice number that uniquely identifies the invoice.
- The date the invoice was issued.
- A description of the product or service sold, including the type of product or service and the quantity sold.
- The total price charged to the buyer, excluding VAT.
- The amount of VAT charged to the buyer.
- The VAT rate applied, for example, 25%.
- The total price charged to the buyer, including VAT.
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.