Government change delays implementation of digital invoice and record keeping phased launch; January 2024 now likely
The implementation of the Danish Bookkeeping Act has been delayed at the start of December 2022. This was due to the delay in formation of a new government – subsequently completed last week.
Accounting and similar systems to support the digital requirements must register with the Danish Business Authority by 31 October 2023.
Denmark was to require digital record keeping for businesses from 1 January 2024. This includes using only certified accounting software and ERS. The requirements include a form of Danish SAF-T, based on the OECD model. This is similar to the UK Making Tax Digital plan, seeking to ensure the entire order to reporting path is digitised and manual processes are expunged.
There will be a threshold for the new obligations of turnover above DKK 300,000, approximately €40,300, in the last two calendar years. But all companies will be required to submit the annual the Erhvervsstyrelsen (Danish Business Authority). The Authority will be providing further technical requirements and a new implementation date in 2023.
Any publisher of accounting, invoicing and similar systems will be expected to register with the Authority by 31 October 2023.
Phased implementation 2024 to 2026
There will be a phased implementation of the new reporting requirements. The schedule is:
- Jan 2024: taxpayers already with annual Erhvervsstyrelsen reporting obligations
- Jan 2026: any other businesses with a turnover of more than DKK 300,000; July for in-house developed accounting systems
Denmark imposed e-invoicing on B2G transactions in 2005 using the PEPPOL BIS 3.0 and OIOUBL format via the NemHande portal.
Read our Danish VAT guide here.
EU review of Digital Reporting Requirements
The EU is also reviewing EU e-invoicing options as part of its VAT in the Digital Age reforms, published in December 2022.
