The Danish Business Authority (ERST) doubles up as the Peppol Authority in Denmark.

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E-Invoicing in Denmark

21 February 2023

Electronic Invoicing Becomes Mandatory for All Danish Businesses

Mass adoption of e-invoicing in Denmark will result in significant economic benefits and boost business competitiveness.

The Danish flag

Denmark, like many countries the world over, is rolling out mandatory electronic invoicing in a bid to digitize its economy and minimize tax non-compliance.

While the country adopted e-invoicing in 2005, it hasn’t been mandatory for B2B organizations. Only the public administrators and (B2G) suppliers were required to comply with electronic invoicing in Denmark.

The Danish parliament passed the Bookkeeping Act on May 19th, 2022, initially slated to take effect on July 1st, 2022.

The Act mandates all companies of all sizes to issue, receive, process, and archive invoices electronically.

While the enactment of the Act was delayed to pave the way for the formation of a new government, it’s now set to come into force.

Unimaze has been keeping track of the e-invoice developments in Denmark. Here’s everything you need to know about the imminent digital transformation in the country.

E-Invoicing in Denmark - A Quick Overview

E-Invoicing/CTC Model

B2G: Centralized/Peppol
B2B: Post Audit

Mandatory Infrastructure

B2G: Nemhandel/Peppol
B2B: Not Applicable

Mandatory e-Invoice Format

B2G: OIOUBL or Peppol BIS
B2B: N/A

Issuing Mandate

B2G: Suppliers to all contracting authorities
B2B: No explicit requirements

Receiving Mandate

B2G: All contracting authorities
B2B: Buyer’s consent required

Digital Signature

Not Required

Archiving Abroad

Allowed Under Specific Circumstances

Archiving Period

5 years for Movable Property
10 years for Immovable Property

E-Invoicing in Denmark: The Timeline

Timeline of e-Invoicing in Denmark.

The mandatory B2B electronic invoicing in Denmark rollout timeline will be as follows:

January 2023

The Danish Business Authority will publish the detailed requirements for sending and receiving e-invoices.

System suppliers must then configure their products to comply with the new invoicing regulations and apply to the authority to approve their systems.

January 2024

All B2B businesses in Denmark will start using the approved system for B, C, and D accounting classes.

January 2026

All private companies in class A accounting class generating more than DKK 300,000 must comply with mandatory e-invoicing in Denmark.

Even though businesses generating less than DKK 300,000 are exempt from the mandate to use a digitized accounting system, they must comply with all other legal requirements. What Will the Introduction of Mandatory e-Invoicing Mean for Danish Businesses?

Mass adoption of e-invoicing in Denmark will result in significant economic benefits and boost business competitiveness. Besides, doing business with the public sector will be much easier, especially since the Bookkeeping Act backs the digitization of accounting processes.

Here’s how sending and receiving e-invoices in Denmark will benefit Danish B2B businesses.

1. Significant Time Saving

Introducing mandatory electronic invoices in Denmark will help cut many bureaucratic steps out of the invoicing process. As a result, using a cloud e-invoicing solution will enable both the customer and business to save significant amounts of time.

2. Significant Cost Reduction

Paperless invoicing in Denmark means businesses will no longer have to pay postal fees or paper. Besides, companies won’t have to use e-invoice templates or send PDF emails. That, Accounts Payable staff can focus on other value-adding tasks.

3. Better Invoice Tracking

By adopting e-invoices, B2B business operators know when an invoice has been sent, viewed, and paid. More importantly, e-invoicing removes the doubt that your invoice could have been lost or the other party didn’t receive it.

Displaced or lost invoices are some of the reasons for late payment, with 11% of customers saying they never saw the invoice. With e-invoicing, a customer can receive your invoice in minutes, enabling faster payment.

5. Fewer Mistakes

According to statistics, 61% of late invoice payments are due to incorrect invoices.

Electronic invoices help reduce manual input, fast-track business automation, and minimize mistakes and typos. Sending invoices with the correct details eliminates unnecessary back and forth between trading partners, leading to faster payments.

5. Better Customer Service

It is easier and more convenient for customers to receive e-invoices in their preferred format. With a standard digital management platform, customers can quickly access documents at the click of a button.

Since e-invoicing increases efficiency by 70%, B2B Danish businesses can leverage early payment discounts for more savings.

E-Invoicing Platform in Denmark

Denmark has a centralized model supporting Peppol invoicing. The entire system is anchored in the official NemHandel platform.

Understanding the NemHandel Platform

NemHandel is a standard public digital framework that powers the exchange of business documents between public authorities and private companies.

The law requires trading entities to use NemHandel to exchange business documents with Danish authorities.

You must connect your account system to an access point to send and receive digital business documents through NemHandel.

An access point ensures that the data you feed to the NemHandel platform from your accounting system complies with the mandatory security standards.

Peppol in Denmark

The Danish Business Authority (ERST) doubles up as the Peppol Authority in Denmark.

The authority registers and approves Peppol Access Point providers in the country. The ERST will also oversee the implementation of e-procurement via Peppol.

Unimaze is an authorized Peppol Access Point provider, working with ERST to help B2B businesses comply with the mandatory e-invoicing in Denmark.

What is the required mandatory e-invoice format in Denmark? The NemHandel supports OIOUBL and Peppol BIS e-invoice formats.

Long-term Goals for Peppol e-Invoicing in Denmark

In the long term, the Danish government intends to achieve the following with Peppol e-invoicing:

Promote cross-border electronic trade for the private and public sector
Make the use of electronic catalogs and order mandatory for public procurement
Increase the use of electronic invoicing and e-procurement in the public sectors
Offer the technical framework required to overcome connectivity barriers
Promote B2B e-invoicing

How Can Unimaze Help?

For 20+, Unimaze has helped hundreds of companies worldwide exchange business documents electronically.

In the last 10 years, we have been at the forefront of enabling businesses to ensure compliance in countries where e-invoicing has become mandatory, including Canada, Serbia, Australia, the UK, and Poland, to name but a few.

Unimaze offers e-invoicing solutions that comply with Denmark's latest regulations and data transfer standards.

Why Choose Unimaze as Your Peppol Access Point Provider in Denmark?

Here’s why you should partner with Unimaze for your e-Invoicing in Denmark rollout.

We'll ensure your company complies fully with Denmark's local regulations and e-archiving requirements.
Your company will become fully compliant with e-invoicing requirements in more than 100 countries using a single platform.
We'll provide an e-invoicing solution customized to your company's needs
Your company will join a growing list of businesses enjoying seamless EDI services from Unimaze.
You can expect fast, reliable customer service from our team of experienced e-invoicing experts.

What Next?

Join Danish companies that have already complied with mandatory e-invoicing in Denmark with Unimaze.

We’ll help integrate your accounting system into the NemHandel platform seamlessly without asking you to upgrade your current infrastructure.

Fast-track your electronic compliance in Denmark with Unimaze solutions.

Contact us or book a meeting with one of our invoicing experts in Denmark to discuss your specific electronic invoicing needs.

e-Invoicing in Denmark - FAQs

What Needs to be on a Danish invoice?

CVR number in DenmaA Danish invoice should include the following information:

Invoice number: a unique identifier for the invoice.
Date of issue: the date the invoice was created.
Supplier information: the name, address, and CVR (Central Business Register) number of the company issuing the invoice.
Customer information: the company receiving the invoice's name, address, and CVR number.
Description of goods or services: a detailed description of what was sold.
Quantity and price: the number of goods or services sold and the price for each item.
Total amount: the total amount due, including any taxes.
Payment terms: the due date and payment methods accepted.
VAT (Value Added Tax) number: the VAT number of the supplier, if applicable.

Tax rate: the percentage of VAT applied to the total amount.

Note: In Denmark, invoices should be issued in Danish Kroner (DKK), and VAT should be included in the total amount.

What is an EAN Number in Denmark?

An EAN (European Article Number) number is a unique identifier assigned to products traded in the European market.

In Denmark, EAN numbers are used to identify products for sales and inventory tracking and to facilitate the exchange of information between businesses.

The EAN number consists of 13 digits and has a barcode that can be scanned at the point of sale.

The scannable barcode ensures that different European companies can easily identify the same product. It also helps to provide clarity caused by different product codes used by various suppliers.

In Denmark, the EAN number is assigned by GS1 Denmark, a non-profit organization responsible for managing and maintaining the EAN system in the country.

What is the Danish Bookkeeping Act?

The Danish Bookkeeping Act (Bogføringsloven) governs the country's recording and reporting of financial transactions.

The Act sets out the legal requirements for bookkeeping and accounting. It also outlines the responsibilities of companies and individuals in maintaining accurate financial records.

Under the Danish Bookkeeping Act, all companies and businesses must keep accurate and complete records of their financial transactions, including sales, purchases, and expenses.

Businesses must keep these records for a minimum of 5 years and avail them to the tax authorities upon request.

The Act also requires companies to prepare annual financial statements and have them audited by a certified public accountant. Further, companies must submit these statements to the Danish Business Authority (Erhvervsstyrelsen) and avail them to the public.

The Danish Bookkeeping Act seeks to promote transparency and accountability in companies' and businesses' financial dealings. It also ensures that accurate and reliable financial information is available to support informed decision-making by stakeholders.