Denmark
This guide is for e-commerce companies that sell online via web stores or at marketplaces.
Provinces
Goods
Provinces
Goods
Digital services
About
Goods
About
Goods
About
Digital services
About
Digital services
Goods
Digital services
Goods
Digital services
VAT Standard rate
The standard VAT rate in Denmark in 2024 is 25%.VAT Reduced rate
A special reduced rate of 0% applies to certain goods and services that are generally of increased social importance (for example, newspapers; hospital treatment; insurance and reinsurance services; and most financial transactions, including cash deposits and loans).VAT Standard rate
The standard VAT rate in Denmark in 2024 is 25%.
VAT Standard rate
25%
VAT Reduced rate
0%
Thresholds
€10,000
Threshold
Since July 1, 2021, new rules have been introduced throughout the EU, according to which the threshold is €10,000.Deductible VAT
VAT due or paid on the following transactions can be deducted:- Domestic supplies of goods or services and transactions treated as such;
- Intra-EU acquisitions of goods and transactions are treated as such;
- Importation of goods.
Registration procedure
To register, you must send a package of the following documents by e-mail:- A form filled out in accordance with the rules;
- A copy of your passport/ID;
- A copy of the company’s registration certificate in your establishment.
Tax representative
Enterprises without a place of business or permanent residence in Denmark have to register through a VAT representative. Unlike a business, a representative must have a place of business or a registered office in Denmark. The representative is also jointly responsible for filing the VAT return and paying the value-added tax. Enterprises from the UK, Norway, Iceland, and EU countries are exempt from the obligation to appoint a tax representative.VAT returns filing date
The period for filing tax returns depends on your turnover and several other conditions.
Filing period |
Annual turnover |
| Quarterly | DKK 5-50 million (€670.000 – €6.700.000 ) |
| Half a year | Less than DKK 5 million |
VAT payment date
It is better to pay taxes together with the filing of the tax return. The payment deadline coincides with the deadline for filing tax reports.Keeping records
For various reasons, the obligation to keep documentation is set from 5 to 10 years.Penalties
If the declaration is not filed, the amount owed will be assessed using estimates, resulting in a fine of DKK 800 and a reminder fee of DKK 65. In addition, interest is accrued starting from the date of late payment until the payment is made. This also applies to fees. The interest rate is 0.7% a month in 2023.E-invoicing in Denmark
What is E-invoicing?
E-invoicing in Denmark is the process of creating, transmitting, and receiving invoices in electronic format. Replacing traditional paper invoices, Denmark uses the OIOUBL standard, which is a structured XML format designed for interoperability and validation, and the NemHandel platform for exchanging e-invoices.For a deeper dive into the e-invoicing standards used in various countries, including Denmark, visit our Multi-Country E-Invoicing Engine.How E-invoicing Works in B2G, B2B, and B2C Transactions
E-invoicing requirements in Denmark vary across Business-to-Government (B2G), Business-to-Business (B2B), and Business-to-Consumer (B2C) transactions. Below is an explanation of how e-invoicing functions in each category. For more information on how e-invoicing functions in multiple sectors globally, explore our Multi-Country E-Invoicing Engine.B2G (Business-to-Government)
Since 2005, it has been mandatory for public sector transactions to use E-invoicing. Businesses providing goods or services to government entities must submit invoices in the OIOUBL format through the NemHandel platform. To learn more about how public sector e-invoicing works across Europe, refer to our Multi-Country E-Invoicing Engine. Example: An Engineering Company that provides consulting services to a government agency generates an invoice in OIOUBL format and sends it through NemHandel. The public entity verifies the invoice before processing the payment.B2B (Business-to-Business)
There are no general requirements for electronic invoices in the B2B sector. However, depending on the company's turnover and reporting obligations, specific requirements apply. From January 2024, companies obliged to submit annual accounts to the Danish Business Administration (ERST) are required to switch to electronic invoicing. By January 2026, companies whose turnover exceeds DKK 300,000 for two consecutive years must also start using e-invoicing. If you're interested in the broader scope of B2B e-invoicing regulations in different countries, check out our Multi-Country E-Invoicing Engine. Example: A logistics company issues an invoice to a manufacturing business. The invoice is created in the OIOUBL format and processed via a digital bookkeeping system (DBS) connected to the NemHandel platform.B2C (Business-to-Consumer)
E-invoicing is not mandatory for consumer transactions in Denmark. However, businesses are encouraged to adopt digital bookkeeping systems that can manage invoices in compliance with the e-invoicing standards. Example: A retail store sells furniture to an individual. While no mandatory e-invoice submission is required, the store uses its digital system to store and manage the transaction details.Who Must Comply?
The following table summarizes the categories of businesses required to adopt e-invoicing in Denmark, along with their specific obligations and key dates:| Category | Requirement | Start Date |
| B2G (Business-to-Government) | Mandatory e-invoicing for public administration transactions. | 2005 |
| B2B (Annual Account Submission) | Mandatory e-invoicing for businesses submitting annual accounts to ERST. | January 2024 |
| B2B (Turnover > DKK 300,000) | Mandatory e-invoicing for businesses exceeding the turnover threshold. | January 2026 |
| All businesses using DBS | Digital bookkeeping systems must support e-invoicing and integrate with NemHandel. | May 2022 |
How to Use the NemHandel Platform
As a platform, NemHandel is the government infrastructure in Denmark for the electronic invoice exchange. Businesses must ensure their systems are connected to NemHandel to comply with e-invoicing requirements. For more details on similar e-invoicing platforms across different countries, visit Multi-Country E-Invoicing Engine.Steps to Use NemHandel
- Set Up a Digital Bookkeeping System (DBS): Businesses need to adopt a DBS capable of generating, sending, and receiving invoices in the OIOUBL format.
- Connect to NemHandel: Ensure that the chosen DBS is integrated with NemHandel for invoice submission.
- Generate the Invoice: Create invoices in compliance with the OIOUBL standard.
- Send the Invoice: Submit the invoice through NemHandel or a certified service provider connected to the platform.
- Receive Confirmation: Government or business recipients verify and process the invoice.
Exemptions
While Denmark’s e-invoicing mandate covers most businesses, some exemptions apply:- Companies with turnover below DKK 300,000 for two consecutive years are exempt until January 2026. To explore the exemptions and compliance details for various countries, including Denmark, refer to our Multi-Country E-Invoicing Engine.
- Businesses not required to submit annual accounts to the Danish Business Authority are currently exempt but must comply in the future based on turnover thresholds.
Key Milestones in E-invoicing Implementation
Denmark’s e-invoicing journey has progressed through several key milestones:- January 2005
- Mandatory e-invoicing was introduced for all public sector (B2G) transactions.
- April 18, 2019
- All public sector organizations are required to receive and process e-invoices in compliance with the European e-invoicing standard.
- May 19, 2022
- Businesses are required to use digital bookkeeping systems capable of handling e-invoicing.
- January 2024
- Businesses submitting annual accounts to the Danish Business Authority are mandated to adopt e-invoicing.
- January 2026
- Businesses with a turnover exceeding DKK 300,000 for two consecutive years must comply with e-invoicing mandates.
Threshold
For digital services, the threshold is the same as for goods – €10,000.Pieces of evidence
It is very important to correctly determine the location of the buyer. To do this, it is necessary to reliably establish at least two elements from the following:- Customer’s permanent address;
- Billing address (bank or electronic payment operator);
- Internet Protocol (IP) address;
- Telephone number;
- The location of the customer’s fixed landline through which the service is supplied to him;
- Other commercially relevant information.
E-services list
EU legislation states that a digital product is any product that is stored, delivered, and used in an electronic format. These are goods or services that a customer can receive by e-mail, downloading them from the Internet, or by logging into a website, in particular:- Electronic books, images, movies, and videos, whether buying a copy from Shopify or using a service (for example Amazon Prime). In tax materials, these products are referred to as “Audio, visual or audiovisual products”;
- Downloadable and streaming music, whether buying an MP3 or using music services;
- Cloud-based software and as-a-service products (SaaS, PaaS, IaaS);
- Websites, site hosting services, and Internet service providers;
- Online ads and affiliate marketing.
Registration procedure
Taxable persons registered shall register via the Government portal using ‘E-tax for businesses”’ (“TastSelv Erhverv”). The following information is to be provided to the Tax Authority upon registration: Taxable persons registered outside the European Union (non-Union scheme).Full information about the company:
- Company’s name, a trading name of the company (If applicable), full postal address, email address and website of the taxable person, name and phone number of the contact person;
- National tax number (If applicable);
- Country in which the taxable person has his place of business;
- International bank account number or IBAN number and BIC;
- An electronic declaration that the taxable person is not registered for VAT within the Union;
- Date of commencement of using the scheme.
Taxable person established in Denmark (Union scheme)
- Company’s name, a trading name of the company if different from the company name, full postal address, email address and website of the taxable person, name and phone number of the contact person, BIC number;
- Tax identification number in Denmark;
- Full postal address of fixed establishment(s) situated in other Member States of the European Community;
- VAT identification number issued to the taxable person by any Member State of the European Community where the taxable person is not established;
- VAT identification number issued by any Member State of the European Community where the taxable person’s fixed establishment is located, or tax reference number in the absence thereof;
- Country where the taxable person is established if established outside the territory of the European Community;
- Date of commencement of using the scheme;
- International bank account number number.
Keeping records
You must keep records of your activities for at least 10 years from the end of the year in which the service was provided. If requested, you must provide digital copies.Filling VAT returns
EU VAT returns are due quarterly. You must submit a declaration and pay the tax within 20 days after the end of the quarter.- 20 April, for the Q1 ending 31 March;
- 20 July, for the Q2 ending 30 June;
- 20 October, for the Q3 ending 30 September;
- 20 January, for the Q4 ending 31 December.
VAT payment date
Payment must be made before the deadline for filing a tax return. Ideally, make the payment together with the provision of reports. Please note that when making a payment, you must specify a unique number of that return.
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