Our neighboring country Denmark is considered a European pioneer in e-invoicing. Consequently, e-invoicing in Denmark has been mandatory for all invoicing in the B2G sector since 2005. According to the Danish Accounting Act (Lov om bogføring) of 2022, e-invoicing is to be expanded into a comprehensive digital ecosystem for the entire Danish economy (including the B2B sector) in the future. As a result, all Danish companies with an annual turnover exceeding 300,000 Danish Kroner (approx. 40,000 Euros) will be required to be able to send and receive e-invoices from January 2026. They must therefore switch to a digital accounting system. The motivation for this undertaking is derived from the EU-wide ViDA initiative (VAT in the Digital Age), to which all member states are committed. Accordingly, from 2028, they must comply with a common harmonized e-invoicing obligation.
What is electronic invoicing?
Electronic invoicing refers to the fully digital exchange of invoice data in structured XML formats, enabling automated processing. Unlike PDF invoices, e-invoices are machine-readable documents that will replace the legal validity of paper invoices in the future. Companies benefit from significant savings in processing costs, reduced processing times, and improved transparency. At the same time, the ecological footprint is reduced.
European E-invoicing Standard (EN 16931)
The EN 16931 standard harmonizes electronic invoicing in the EU and has been mandatory for all public sector entities (B2G) since April 2019. Through the Peppol network (Pan-European Public Procurement On-Line), EN 16931 has established itself as a de facto standard and is becoming increasingly relevant for B2B transactions with the ViDA initiative. In one of our other blog posts, you can find more information about the Peppol network here.
How does e-invoicing work in Denmark?
Denmark uses a two-track system: On the one hand, the national NemHandel system for national B2G and B2B transactions. On the other hand, the Peppol network for national (B2G & B2B) and international (B2B) transactions.
Consequently, companies create e-invoices in their ERP systems, which are digitally signed and sent via certified and secure interfaces. With the introduction of the OIOUBL 3.0 e-invoicing format (Offentlig Information Online UBL) in November 2024, a structured response function for two-way communication was introduced in Denmark. Companies can therefore distinguish between technical receipt confirmations and content confirmations of the e-invoice.
E-invoicing in Denmark: Between pioneering role and new challenges
Denmark set the course for modern, digital administration early on. Through the early implementation of modern and digital accounting administration since 2005, e-invoicing in Denmark has been mandated for all B2G transactions. Furthermore, the implementation of EU Directive EN 16931 in the B2G sector has been in effect since 2019, while the private sector (B2B) complies with the obligations under the Accounting Act of 2022. At the same time, requirements for a VAT real-time reporting system have been initiated, which aims to capture tax-relevant data in real time and increase transparency towards the tax authorities.
Technical Specifications and Standards: What companies in Denmark need to know now
Mandatory Formats and Platforms
The transmission of mandatory e-invoices in Denmark from the B2B sector takes place via the national NemHandel infrastructure, which serves as a central platform for invoice exchange. However, in addition to NemHandel (and the national e-invoicing format OIOUBL 3.0), Denmark also supports Peppol BIS Billing 3.0 to ensure cross-border interoperability. In this context, it is currently being examined whether Denmark should continue to maintain its national format and infrastructure or fully switch to the international Peppol standard.
Requirements for Accounting Systems
From January 2026, all companies with an annual turnover exceeding 300,000 DKK must use a certified, cloud-enabled accounting system. Companies with internal accounting systems (e.g., SAP) have until July 2026 under the aforementioned conditions. These systems must be able to process e-invoices, provide real-time data, and generate SAF-T files for tax audits. Furthermore, they must be compatible with NemHandel and Peppol to meet national and international requirements.
Conclusion: Act now and prepare systems
Denmark, in particular, demonstrates how a proactive digitalization of invoicing and tax processes can look in a European comparison. This situation should encourage companies to use the remaining time for the necessary adjustments to their accounting systems. They should also familiarize themselves with the new e-invoicing formats. Above all, early action not only strengthens compliance but also brings efficiency gains in accounting processes and improved data quality (e.g., customer and vendor master data).
A viable tool is SAP Document and Reporting Compliance (DRC), which meets these requirements. With SAP DRC, companies can not only ensure compliance with Danish e-invoicing requirements but also make their processes more efficient and integrate them seamlessly into existing systems. Thus, the SAP DRC solution underscores the clean-core approach to standardizing SAP systems. You can find more information about the solution here on our website.
adesso business consulting AG provides comprehensive support – from strategic analysis and technical implementation in SAP to go-live and beyond. Numerous clients already trust our expertise in implementing legally compliant solutions. Let us work together to successfully implement your e-invoicing strategy in Denmark.
