Denmark
Provinces
General
Provinces
General
About
General
About
General
General
General
Denmark was an early adopter of e-invoicing, mandating it for
public sector suppliers since 2005. Regulated under EU Directive 2014/55/EU, ensuring compliance and standardization for cross-border public sector transactions.
Implementation Timeline
| Date | Requirement | Details |
| April 18, 2019 | EU Directive Compliance | Denmark fully implemented the EU Directive 2014/55/EU, standardizing e-invoicing for cross-border transactions within the public sector |
| 2025 | Mandatory for Public Sector Suppliers | Denmark was one of the first countries to mandate e-invoicing for all suppliers to public sector entities via the NemHandel system |
Who Needs E-Invoices?
E-invoicing in Denmark is required for:- Public Sector Suppliers: Required to use NemHandel or PEPPOL platforms.
- B2B Transactions: Voluntary adoption is growing for improved efficiency and VAT compliance.
- Non-Resident Businesses: Required for transactions with Danish public entities if VAT-registered in Denmark.
E-Invoicing vs. E-Billing
| Aspect | E-Invoicing | E-Billing |
| Purpose | Compliance with EU and Danish regulations | Informal and internal transactions |
| Format | OIOUBL or PEPPOL BIS | Unregulated formats |
| Usage | Mandatory for B2G, growing in B2B | Customer relationship and record-keeping |
Key Features of Denmark’s E-Invoicing System
Denmark’s e-invoicing system ensures efficient validation and processing, involving:- Submission Platforms: NemHandel or PEPPOL using OIOUBL or PEPPOL BIS format.
- Validation: Ensures compliance with standards and legal requirements.
- Archiving: E-invoices must be stored electronically for 5 years under Danish tax laws.
E-Invoicing Dataset
E-invoices in Denmark include the following critical data:- Buyer/Seller IDs: VAT IDs.
- Invoice Details: Number, issue date, and payment terms.
- Goods and Services: Descriptions, quantities, unit prices, and VAT details.
- Taxes: Applicable VAT rates and amounts.
- Transaction Info: Total amount, currency, and payment method.
- Delivery Info: Date and location.
E-Invoicing Across Transaction Types
- B2B: Voluntary adoption in private sector to reduce costs,improve payment cycles, and ensure VAT compliance.
- B2C: Not mandatory but enhances transparency and customer experience.
- B2G: Mandatory for all public sector suppliers. Requires compliance with OIOUBL or PEPPOL BIS standards.
Penalties for Non-Compliance
Non-compliance with Denmark’s e-invoicing regulations may result in:- Invoice Rejections: May delay payments.
- Operational Risks: Processing delays or contract losses with public entities.
- Legal Risks: Fines and audits for repeated violations.
Subscribe to the newsletter
No spam, only interesting news