Whenever you sell a service or product to a customer, it's essential to provide them with:
- A regular sales invoice
- A simplified sales invoice
USUAL SALES INVOICE
You must issue a regular sales invoice in three different circumstances:
- If your customer is a company registered for Value Added Tax (VAT) in Denmark, and the total sale amount with VAT is equal to or greater than DKK 3,000, you need to issue a regular sales invoice.
- Additionally, even if the sale is less than DKK 3,000 with VAT, you must still issue a regular sales invoice if the customer requests it and is registered for VAT.
- If your customer is an individual consumer and the total sale amount including VAT is more than DKK 5,000, you must issue a regular sales invoice.
A normal sales invoice includes:
- Name, address, and CVR (Central Business Register) number of the seller's company
- Name and address of the buyer's company
- Invoice number
- Invoice date
- Delivery date (if it's different from the invoice date)
- Description of the product or service being sold
- Price per item or unit, excluding Value Added Tax (VAT)
- Any discounts that have been applied
- Total price, excluding VAT
- The VAT rate applied, for example, 25%
- The amount of VAT being charged
- Total price, including VAT
Sales to companies located in EU countries
If you're selling to a company based in an EU country that's registered for VAT, you need to issue them a regular sales invoice and include their VAT number on it. If you're selling without VAT and using the EU's reverse charge rules, make sure to note that on the invoice with the words "reverse charge". You also need to declare your sales to the EU to SKAT Erhverv every month before the 25th of the following month. You're responsible for verifying that your customer's VAT number is valid, and if you don't do so, you could end up having to pay the VAT yourself.
Private consumers sales from the EU
It's important to provide a regular sales invoice to EU citizens who are private consumers. Additionally, be sure to keep in mind the recent changes to the "Moms One Stop Shop" rules which went into effect on July 1st, 2021.
SIMPLIFIED SALES INVOICE
It's possible to issue a simplified sales invoice under certain circumstances, namely:
- Your customers are located in Denmark and your total sales, including VAT, are less than DKK 3,000.
- You sell products or services to individual customers, and your total sales, including VAT, are no more than DKK 5,000.
The simplified sales invoice includes:
- The name and address of the seller's company, as well as the CVR number
- An invoice number to identify the specific invoice
- The date on which the invoice was issued
- A description of the items or services that were sold, including the quantity of each item
- The total price of the goods or services, excluding VAT
- The amount of VAT charged
- The rate of VAT that was applied (e.g. 25%)
- The total price of the goods or services, including VAT.
If you primarily sell goods or services to individual customers and your point of sale system allows for printing of receipts, you may opt to use receipts instead of a simplified invoice. Receipts contain information such as the name and address of the seller's company, the date of sale, the item description, price, and VAT. However, it's important to note that receipts are not considered legal invoices and therefore may not meet the requirements for taxation and accounting purposes.