Denmark: Digital accounting obligations from 2026

From 1 January 2026, Denmark’s Bookkeeping Act will require VAT-registered businesses with turnover above DKK 300,000—including foreign VAT-registered entities—to use compliant digital accounting systems instead of paper-based records. These systems must support structured e-invoicing (OIOUBL/Peppol BIS), digital archiving, and SAF-T generation, with non-compliance subject to supervision by the Danish Business Authority and fines of up to DKK 1.5 million

Denmark has introduced new digital accounting rules under the Danish Bookkeeping Act. These rules are being introduced in phases and will fully apply to certain businesses from January 1, 2026.

From January 1, 2026, the rules apply to:

-       All VAT-registered businesses with a net turnover above DKK 300,000 (EUR 46,740) for two consecutive years,

-       Danish companies and foreign companies that are only VAT-registered in Denmark but carry out taxable activities there.

Businesses must:

-       Use digital accounting systems instead of paper or manual records,

-       Record, store, and manage accounting data electronically.

The accounting system must be able to:

1. Issue and receive electronic invoices in structured formats such as OIOUBL and Peppol BIS,
2. Store accounting data digitally in line with Danish rules,
3. Generate SAF-T (Standard Audit File for Tax) when requested by the tax authority
   (there is no obligation to submit SAF-T regularly).

Penalties and supervision:

-       Non-compliance can lead to significant penalties,

-       Fines can reach up to DKK 1.5 million (approx. €200,000) for serious or repeated breaches,

-       Compliance is supervised by the Danish Business Authority, working together with the Danish Tax Administration.

If a business is VAT-registered in Denmark and meets the turnover threshold:

-       Paper-based accounting is no longer allowed,

-       A compliant digital accounting system is mandatory,

-       The system must support e-invoicing, digital archiving, and SAF-T generation,

-       These rules also apply to foreign VAT-registered businesses.