Whenever you sell a product or provide a service to a customer, it is mandatory to provide:
- A regular sales invoice
- A simplified sales invoice
USUAL SALES INVOICE
There are three distinct situations that require the issuance of a regular sales invoice:
- If your customer is a VAT-registered company in Denmark and the sale is DKK 3,000 with VAT or more, you are required to issue a regular sales invoice.
- Even if the sale is less than DKK 3,000 with VAT, if your customer is a VAT-registered company and asks for an invoice, you must provide one.
- If your customer is a private consumer and the sale exceeds DKK 5,000 including VAT, you must issue a regular sales invoice.
Typical elements found in a sales invoice are:
- Name of the seller's company, address, and CVR (Company Registration) number
- Name and address of the buyer's company
- Invoice number
- Date of the invoice
- Delivery date, if it differs from the date of the invoice
- Description of the product or service sold
- Price per item or unit, excluding VAT
- Any applicable discounts offered
- Total price, excluding VAT
- The rate of VAT applied, such as 25%
- The total amount of VAT
- The total price of the product or service, including VAT.
Sales to companies located in EU countries
If you are doing business with an EU-based company, it is necessary to issue a regular sales invoice. Additionally, when your customer is a company based in an EU country registered for VAT, it is important to include their VAT number on the invoice. If you are selling without VAT, and using the EU's reverse charge rules, it should be clearly stated on the invoice, and a simple text such as "reverse charge" will suffice.
You must remember to declare your sales to SKAT Erhverv every month and complete this by the 25th of the following month. Moreover, you are accountable for verifying the validity of your customer's VAT number. Failure to do so could lead to your liability to pay VAT.
Private consumers sales from the EU
It is crucial to issue a regular sales invoice to private consumers who are EU citizens. It is also important to keep in mind the current special rules of "Moms One Stop Shop," which became effective on July 1st, 2021.
SIMPLIFIED SALES INVOICE
A simplified sales invoice are possible to be issued when:
- Two conditions apply: Your customers are from Denmark and your sales are less than DKK 3,000 including VAT.
- Your total sales must not exceed DKK 5,000, including VAT.
The abbreviated sales invoice contains:
- The name, address, and registration number (CVR) of the company selling the goods or services
- The unique number assigned to the invoice
- The date on which the invoice was issued
- Details about the product or service sold, including what it is and how many units were sold
- The total amount charged for the product or service, excluding value-added tax (VAT)
- The amount of VAT charged for the sale
- The percentage rate of VAT applied to the sale, for example 25%
- The total amount charged for the product or service, including VAT.
If your primary customers are individual consumers and you use a point-of-sale system that is capable of generating printed receipts, you may opt to provide receipts instead of simplified invoices.