Denmark has been at the forefront of using eInvoicing, and it's mandatory for business-to-government (B2G) since 2005. Following that, the Bookkeeping Act of 2022 has also made business-to-business (B2B) eInvoicing mandatory in a phased approach. Medium and large enterprises are already included under it, and the smaller enterprises need to implement e-Invoicing by January 1, 2026.
Governed by the Danish Business Authority, the system utilizes platforms such as NemHandel and the Peppol network, utilizing formats such as Peppol BIS 3.0 and OIOUBL, aligning with the European standards (EN 16931). The following guide provides a brief overview of the eInvoicing timeline, guidelines, process, and steps for implementing e-Invoicing in Denmark to make businesses compliant and efficient.
Denmark has been at the forefront of eInvoicing since 2005, making it mandatory for public institutions and authorities for B2G transactions. Moving forward with introducing the Bookkeeping Act, we covered B2B transactions with a phased-out approach.
Currently, the NemHandle platform is used to exchange B2G transactions. As per the Bookkeeping Act, B2B invoices must be transmitted through the NemHandle platform or PEPPOL network, following formats like Peppol BIS 3.0 and OIOUBL, both compliant with the European standard (EN-16931). No e-sign is mandatory as of now. eInvoices will be archived for 5-10 years, depending on the asset class.
Denmark follows a phased-out approach for the implementation of e-invoicing. Here is a brief overview:
Year | Threshold Requirement |
2005 | e-Invoicing start date. It is mandatory for all public institutions & authorities for B2G transactions. |
Then, the adoption of the Bookkeeping Act of 2022 mandated digital bookkeeping for businesses, including Denmark e-Invoicing. Here are the phases in which this will be implemented:
Year | Threshold Requirement |
January 2024 | Companies filing annual reports to the government’s bookkeeping system- ERST (Class B, C, D) |
July 2024 | Companies using in-house bookkeeping software (Class B, C, D) |
January 2026 | Small companies which are not obliged to send annual reports with turnover > 300,000 DKK for two consecutive years (Class A) |
July 2026 | Small companies using in-house bookkeeping software (Class A) |
Denmark uses the NemHandel network to send and receive electronic invoices. The NemHandel network operates on the four-corner model, similar to the PEPPOL network, which allows Danish businesses to trade electronically across Europe. Here are the e-Invoice guidelines:
Denmark has specific requirements for electronic invoicing. Here’s what you need to know:
In Denmark, e-invoicing compliance applies to both private companies and public institutions.
e-invoicing in Denmark simplifies financial transactions and improves compliance.
ClearTax, a trusted e-invoicing solution provider, keeps businesses in line with Denmark's e-invoicing regulations by:
Denmark has been a leader in e-invoicing, with mandatory adoption for business-to-government (B2G) transactions since 2005. The Bookkeeping Act of 2022 extended this requirement to business-to-business (B2B) transactions with a phased implementation. By 2026, all businesses, including small enterprises, must comply with e-invoicing requirements using the NemHandel and PEPPOL networks. The process includes registration, preparation, submission, and transmission of invoices in formats like PEPPOL BIS 3.0 and OIOUBL, which are standardized for cross-border operations. This system offers numerous benefits, such as cost efficiency, improved accuracy, faster payments, and enhanced compliance. ClearTax helps businesses streamline this process by integrating e-invoicing into their ERP systems, ensuring real-time compliance, and providing cloud-based solutions for monitoring and reporting.