Denmark is expanding its long-standing public sector e-invoicing mandate to the private sector under the new Bookkeeping Act, requiring medium and large businesses to adopt certified digital systems starting in 2024. This phased rollout aims to modernize financial processes, enhance transparency, and align with EU digital trade standards, with full inclusion of most businesses by 2026.
Denmark Expands E-Invoicing Requirements to the Private Sector
Public
Denmark
Author: Ivana Picajkić
Category:
Fiscal subject related
Views:
1416
Content accuracy validation date:
16.07.2025
Content accuracy validation time:
08:34h
Denmark has been a leader in electronic invoicing since 2005, when it made digital invoices mandatory for public sector suppliers. These invoices are sent through the national platform NemHandel, which ensures secure and standardized data exchange. With the new Danish Bookkeeping Act, the country is now extending e-invoicing requirements to private businesses, aiming to modernize financial processes and improve transparency.
The Danish government wants to simplify bookkeeping, reduce paper use, and support secure digital transactions. E-invoicing helps businesses avoid manual errors, speeds up payments, and strengthens fraud prevention. It also supports Denmark’s goal of aligning with EU-wide digital trade practices.
Developments in Danish e-Invoicing Law:
- Since 2005, e-invoicing is mandatory for all public sector transactions,
- From July 2024, medium and large businesses using standard accounting software must switch to certified bookkeeping systems,
- From January 2025, this also applies to companies using custom-developed software,
- From January 2026, the rules will include financial institutions and individually managed businesses with more than 300,000 DKK in annual revenue,
- Invoice formats include OIOUBL (UBL 2.0) and Peppol BIS 3.0,
- Invoices must be archived for at least five years,
- Electronic signatures are not mandatory.
Smaller businesses are not required to adopt certified e-invoicing yet but must still comply with other bookkeeping and archiving rules.
The NemHandel platform remains the central tool for exchanging e-invoices with Danish public institutions. Businesses must connect through certified access points to ensure their invoices meet security and data standards.
Denmark also promotes the Peppol network, which allows cross-border invoice exchange and supports international trade. Peppol uses the same data formats as NemHandel and is overseen nationally by the Danish Business Authority.
In summary, Denmark’s shift to mandatory e-invoicing is part of a broader move to digital bookkeeping. While public sector e-invoicing has been standard for years, private businesses are now being brought into the same framework to ensure consistency, reduce fraud, and improve efficiency.
Other news from Denmark
Denmark: Proposal to Remove 25% VAT on Fruit and Vegetables
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
Denmark’s Conservative Party has proposed removing the 25% VAT on fruit and vegetables to ease household costs and promote healthier diets, though implementation would be delayed due to the complexity of adjusting tax and IT systems. The Conservative Party in Denmark has called for the removal of VAT on fruit and vegetables, arguing that rising grocery costs are putting too much pressure on househ... Read more
Denmark Completes SAF-T 2.0 Consultation; Final Version to be Issued
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
Denmark has completed its consultation on SAF-T 2.0, which will require businesses to provide full transaction-level bookkeeping data in a standardized format, with the final version to be issued following review of feedback. Denmark is gradually expanding its e-invoicing and digital accounting rules. Today, businesses that use digital accounting systems must ensure their systems can generate, imp... Read more
Denmark to Abolish VAT on Books from 2026
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
Denmark will abolish its 25% VAT on books in 2026 to combat declining reading habits and make literature more affordable, aligning with Norway’s 0% rate. The government expects book prices to fall significantly and will monitor publishers to ensure the tax cut benefits readers. Denmark plans to abolish its 25% VAT on books in 2026, currently the highest rate on books worldwide. The move is part of... Read more
Reminder: Denmark Releases Draft SAF-T 2.0 for Bookkeeping Systems
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
The Danish Business Authority has published a draft of SAF-T version 2.0, expanding the reporting requirements for registered digital bookkeeping systems under the Bookkeeping Act. The draft, open for consultation until September 1, 2025, aims to enhance automation in business administration by improving e-invoicing integration and tax reporting. The Danish Business Authority has released a draft... Read more
Denmark Updated VAT Refund Rules for Incorrect Invoicing
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
The Danish Tax Administration has updated its rules for correcting wrongly invoiced VAT: suppliers no longer need to prove they will return the VAT to customers, and any refund disputes are now considered private legal matters. However, some conditions still apply, such as the need for a credit note or invoice correction, and in certain cases, buyers may claim VAT refunds directly from the tax aut... Read more
Denmark: New Version of the SAF-T File Format Version 2.0
Public
Denmark
Author: Ivana Picajkić
Denmark
Author: Ivana Picajkić
Denmark has published a draft of SAF-T version 2.0, expanding the file format to include full transaction-level data and mandatory master files to support improved tax reporting, automation, and data exchange under the Bookkeeping Act. While only providers of registered digital bookkeeping systems must adopt the new format, stakeholders are invited to submit feedback by 1 September 2025. The Danis... Read more