In Denmark, the legal basis for electronic invoicing is built on a combination of European and national regulations. These primarily cover VAT, archiving obligations, the electronic submission of invoices in the public sector, and requirements for security and authenticity.
Here are the key legal foundations for electronic invoicing in Denmark:
- EU VAT Directive (2006/112/EC)
As in all EU member states, the foundation for electronic invoicing in Denmark is also based on the EU VAT Directive (2006/112/EC). It establishes that electronic invoices have the same legal validity as paper invoices, provided that the authenticity of the origin and the integrity of the content of the invoice are ensured. Key provisions:
Article 232 of the VAT Directive allows member states to accept electronic invoices if the authenticity (proof of origin) and integrity (immutability of content) are ensured through appropriate measures such as electronic signatures or EDI (Electronic Data Interchange). These requirements for electronic invoices also apply in Denmark, allowing businesses to use electronic invoices in the same way as paper invoices.
- Danish VAT Act (Moms-loven)
The Danish VAT Act (Moms-loven) regulates the main tax requirements for electronic invoicing. It describes the conditions under which electronic invoices can be used for tax purposes:
- Section 63 of the Act states that electronic invoices must meet the same requirements as paper invoices, particularly in terms of invoice number, tax rate, VAT amount, and recipient information.
- Section 61a clarifies that electronic invoices are recognized for tax purposes in the same way as paper invoices, provided they meet the authenticity and integrity requirements.
- Regulation on Electronic Invoices (Fakturaregler)
Denmark has introduced specific regulations for electronic invoicing that govern the technical and practical requirements. These regulations particularly address the exchange of invoices between businesses and between businesses and the public sector.
The regulation ensures that electronic invoices meet both technical requirements and tax requirements (e.g., invoice number and tax rates). It is required that electronic invoices be created and transmitted in a standardized format, such as XML or UBL.
- Electronic Invoicing in the Public Sector (EU Directive 2014/55/EU)
Denmark has fully implemented the EU Directive 2014/55/EU on electronic invoicing in the public sector. This directive mandates that member states introduce systems for electronic invoicing in the public sector and ensure the interoperability of invoice transmission systems.
- Since January 1, 2019, all suppliers entering into contracts with public authorities in Denmark are required to submit their invoices electronically.
- These invoices must use the Peppol standard (Pan-European Public Procurement OnLine) to ensure standardized, secure, and interoperable transmission of invoices between businesses and public institutions.
- Electronic Signatures and Security Requirements
The use of electronic signatures is a common method for ensuring the authenticity and integrity of electronic invoices. In Denmark, the eIDAS Regulation of the EU, which sets the legal framework for electronic signatures, applies:
- Qualified Electronic Signatures (QES) and Advanced Electronic Signatures (AES) are required to ensure that an electronic invoice is authentic and unaltered.
- In Denmark, businesses can use electronic signatures to guarantee the legal validity of their electronic invoices. The eIDAS Regulation ensures that electronic signatures are recognized in all EU member states.
- Archiving Obligations
In Denmark, the archiving of electronic invoices is subject to similar rules as paper invoices. These rules are primarily outlined in the Danish VAT Act and the Tax Administration Act:
- Electronic invoices must be archived for at least 5 years.
- Archiving must be done in a way that ensures the integrity of the invoices throughout the retention period. It must be ensured that the invoices cannot be altered and are always accessible.
- Businesses must ensure that archived electronic invoices remain readable, even as technology evolves over time.
- Practical Implementation of Electronic Invoicing in Denmark
In practice, this means that businesses operating in Denmark must create and submit invoices electronically and in a standardized format like XML or UBL when working with the public sector. Electronic invoices are also permissible in the private sector, provided they meet tax requirements.
- The Peppol infrastructure is used for submitting electronic invoices in the public sector, and transmission takes place through the Peppol network.
- Companies can use certified solutions for creating and submitting electronic invoices that comply with Danish tax authorities’ requirements and EU regulations.
Summary of Legal Foundations in Denmark:
- EU VAT Directive (2006/112/EC): Electronic invoices are legally valid if authenticity and integrity are ensured.
- Danish VAT Act (Moms-loven): Regulates tax requirements for electronic invoices and ensures they meet the same requirements as paper invoices.
- Regulation on Electronic Invoices (Fakturaregler): Regulates technical requirements for electronic invoicing.
- EU Directive 2014/55/EU: Requires businesses to submit electronic invoices in the public sector using the Peppol standard.
- Electronic Signatures: Qualified Electronic Signatures (QES) and Advanced Electronic Signatures (AES) are required to ensure the authenticity and integrity of electronic invoices.
- Archiving Obligation: Electronic invoices must be archived for at least 5 years.
Conclusion:
In Denmark, electronic invoicing is fully recognized and legally regulated in both the private and public sectors. Companies working with public institutions must submit their invoices through the Peppol network using the Peppol standard. Electronic invoices must meet the same tax requirements as paper invoices, and electronic signatures are a key component in ensuring the authenticity and integrity of the invoices. Archiving obligations for electronic invoices last at least 5 years.
Link: Borger | skat.dk
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