Invoicing Requirements under the VAT Act

In the following cases, a full invoice need not be issued to VAT-registered buyers:

• If the business primarily sells to private individuals
• If the sales amount is less than 3,000 DKK, including VAT

Instead, a simplified invoice or receipt is issued with the following information:

• Seller's name and address or VAT number
• Sequential invoice number (not required on sales receipts)
• Date of issuance (invoice date)
• The amount of tax, or a statement that the tax amounts to 20 percent of the total amount

One of the key differences is that the buyer's name does not need to be included, which is the case, for example, with receipts, parking tickets, and similar documents.

However, if the company typically includes a name on the invoice (such as on phone bills), the name listed must be DTU’s in order to qualify for a deduction, regardless of whether the invoice amount is less than 3,000 DKK.

A registered business may issue a consolidated invoice for several separate deliveries of goods or services within a single month.

If the invoice includes both VAT-subject and VAT-exempt deliveries, so-called mixed deliveries, the invoice must clearly indicate which deliveries are subject to tax. Such deliveries must be listed separately with a distinct context.

The invoicing requirements of the VAT Act also apply to settlement documents.

Settlement documents are defined as sales documents issued by the purchaser of a good or service on behalf of the seller.

Settlement documents may only be used if both parties are registered for VAT. It is the buyer's responsibility to ensure that the seller is registered for VAT. You can do this, for example, on the European Commission's website , where you can check all companies within the EU for a valid CVR number.

The conditions for using an invoice are considered met if it is issued based on a written agreement or on statutory or similar uniform rules governing the delivery and pricing of goods. If settlement documents are issued based on a written agreement, the responsible management of both parties must have signed the agreement and retain a copy of it.

Invoicing must still be based on specific details provided by the buyer.

For goods and certain types of services where the buyer is responsible for paying VAT in another EU country, also known as the reverse charge mechanism, the following must be included on the invoice:

• The buyer's VAT number (if the buyer does not have a VAT number, VAT must be charged). The VAT number is automatically included if the buyer is correctly set up in the customer database.
• For services, the VAT code “EU Services Sales” must be used.
• For goods, the VAT code “EU Goods Sales” must be used.

It is important to distinguish between services and goods because goods must be reported to Statistics Denmark.

Goods are all physical items that can be counted and weighed, as well as the following: water, gas, heating, cooling, and electricity. Services are everything else, that is, anything that is not a good.

However, the following services are always subject to VAT: rental of premises and access to conferences, if VAT is also charged on the rent or fee to Danish tenants or participants. If conferences are deemed to be VAT-exempt (see the section on conferences on this page), VAT must not be charged, neither to Danish nor to foreign participants.