Invoicing and Tax regulation in Denmark
Invoicing Regulation in Denmark
In Denmark, the Danish Customs and Tax Administration (SKAT) enforces strict regulations to ensure compliance with invoicing laws. Businesses, whether B2B, B2C, or B2G, are required to issue a properly constructed invoice for goods or services provided, and maintain records of these invoices for at least five years. Such invoices must include detailed information such as the date of issue, a unique identification number, the VAT identification number, and more.
Real-Time Reporting / Fiscalization in Denmark
Mandatory real-time reporting or fiscalization is yet to be fully implemented in Denmark. However, the Danish government has implemented several measures aimed at enhancing tax compliance and limiting tax fraud. These include measures to promote electronic communication and exchange of information between taxpayers and SKAT. It is important to therefore, keep up with any changes as they may involve real-time reporting requirements in the future.
E-Invoicing in Denmark
In Denmark, e-Invoicing is mandatory for B2G transactions. Since 2005, all public institutions have been required by law to send and receive invoices electronically. For B2B and B2C transactions, e-Invoicing is not mandatory but increasingly common due to its cost and time efficiency.
VAT/GST/Tax Compliance in Denmark
Denmark imposes a standard VAT rate of 25%, applicable to most goods and services. Businesses must be registered for VAT if their taxable turnover exceeds DKK 50,000 in a 12-month period. Then, periodic VAT returns must be filed and any VAT owed must be paid to SKAT. Compliance with these VAT regulations is critical to avoiding penalties and ensuring good standing with SKAT. It should be noted that there are no reduced VAT rates or GST in Denmark applicable to any goods or services.