What shall a sales invoice in Denmark contain?
When you sell a product or service to a client, you always need to issue a normal invoice, a simplified invoice or a receipt as a Danish business. In this blog, we describe what the rules are for sales invoices.
What shall a sales invoice in Denmark contain?
When you sell a product or service to a client, you always need to issue either a:
Normal sales invoice;
Simplified sales invoice;
Or a receipt.
A normal sales invoice
You should issue a normal sales invoice in these three situations:
1: If your client is a company registered for VAT in Denmark and the sales are 3.000 DKK, including VAT or more.
2: You also need to issue a normal sales invoice if the client is a company registered for VAT and the client asks for an invoice even if the sales were less than 3.000 DKK, including VAT.
3: Or your client is a private consumer, and the sales exceed 5.000 DKK, including VAT.
A normal sales invoice shall contain
Sellers company name, address and CVR;
Buyers company name/name and address;
Invoice number (ongoing numbers);
Date of invoice;
Delivery date (if different than the invoice date);
Description of product or service;
Price per item/unit without VAT;
Any discounts provided need to be shown;
Total price without VAT;
The VAT rate applied (e.g. 25%);
VAT amount;
Total price with VAT.
Should you add VAT when selling to companies in the EU?
You should always issue a normal sales invoice to companies in the EU.
If your client is a company in the EU registered for VAT, you also need to add the VAT number of the client on the invoice.
And if you sell without VAT using the EU reverse charge rules, this also should be written on the invoice.
A simple “reverse charge” text on the invoice is enough.
Remember to declare EU sales every month on SKAT Erhverv.
The deadline is the 25th of the following month.
NB: It is possible to change the registration to quarterly declarations of EU sales on SKAT Erhverv.
Also, it is your responsibility to verify that the VAT number provided by your client is valid.
You are liable for the VAT if you fail to verify (and document that you verified) the VAT number.
Should you add VAT when selling to companies outside the EU?
In general, if products and services are delivered to a client outside the EU you should not add VAT.
However, some services are considered delivered in Denmark even though the client is from another EU country, if the client uses or benefits from the services inside Denmark.
This is relevant for certain industries like advertising, advisory, accounting services and other services also.
The result is that a non-EU based client, buying services from you, sometimes should pay 25% Danish VAT if services are used inside Denmark.
The client would then need to apply for a refund with the Danish Tax Agency later.
Should you add VAT when selling to individuals in the EU?
If your annual sales to individuals in the EU is below 10.000 EU you can decide to pay the VAT in Denmark (this is the norm) or pay the VAT in the country of the buyer.
If your annual sales to individuals in the EU is above 10.000 EUR you should always pay the VAT in the country of the buyer.
A simplified sales invoice
A simplified sales invoice can be issued in the following situations:
1: You have other Danish companies as clients, and the sales are below 3.000 DKK, including VAT.
2: Or you sell to private consumers, and the total sales are a maximum of 5.000 DKK, including VAT.
A simplified sales invoice shall contain:
Sellers company name, address and CVR;
Invoice number (ongoing numbers);
Date of invoice;
Description of what you sold (what, how many items);
Total price without VAT;
VAT amount;
The VAT rate applied (e.g. 25%);
Total price with VAT.
Receipt
If you are mainly selling to private consumers and using a POS that can print receipts, you can opt-in to print a receipt instead of issuing a simplified invoice.
A receipt shall contain:
Sellers company name or CVR;
Date of issuing the receipt;
Description of what you sold (what, how many items);
Total price without VAT;
VAT amount;
The VAT rate applied (e.g. 25%);
Total price with VAT.
Be aware of new rules from 1.1.2024
Be aware of new rules from 1.1.2024 for some industries relating to digital cash register.
You can read more about these rules here
(Last update: 29.11.2024)
FAQ
What basic information must be included on a normal sales invoices in Denmark?
Seller and buyer's information, unique invoice number, date, and description of goods or services.
Is it mandatory to display VAT on a sales invoice in Denmark?
Yes, VAT details including rate, base, and amount must be shown if applicable.
What additional detail is required on invoices for sales within the EU?
The buyer’s VAT number and a note about the "reverse charge" mechanism if applicable.
What is a simplified sales invoice, and when can it be used?
Simplified invoices can be used for small amounts, requiring less detailed information than a normal invoice.
What specific information is required for services compared to goods on an invoice?
For services, the completion date or period of service must be indicated.
Can sales invoices be issued electronically in Denmark?
Yes, electronic invoices are acceptable as long as they meet all the required criteria.
What is the importance of the invoice sequence number?
It ensures each invoice is uniquely identifiable and helps in maintaining orderly records.
How should discounts be handled on an invoice?
Discounts should be clearly itemised before the total amount payable is calculated.
Is there a time frame within which an invoice must be issued in Denmark?
Specific timing requirements may apply, especially for VAT purposes, suggesting prompt issuance after the sale.
For B2C sales, is displaying the customer’s name and address mandatory?
It's not mandatory for B2C transactions unless the sale is credit-based or requires delivery.