As of July 1, 2024, Denmark's new Bookkeeping Act mandates the digitization of all accounting processes, including invoicing. This marks the beginning of a phased implementation plan introduced by the Danish government in 2022 to modernize and streamline accounting practices across the nation.
The first phase of Denmark’s accounting digitalization has begun
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Denmark
Author: Stefan Ditrih
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Law subject related
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292
Content accuracy validation date:
16.07.2024
Content accuracy validation time:
00:00h
The Bookkeeping Act requires businesses to adopt either certified digital bookkeeping software approved by the Erhvervsstyrelsen (ERST, the Danish Business Authority) or develop custom solutions that comply with the law. This comprehensive digital shift includes all accounting activities, with a specific emphasis on invoicing.
To facilitate this transition, B2B e-invoicing has become mandatory. Companies can choose to use the public NemHandel platform or the Peppol network for their invoicing needs. Invoices must adhere to the Peppol BIS 3.0 (EN16931-compliant) standard or the local OIOUBL format, which is set to receive a 3.0 update to ensure compliance with EN16931, albeit delayed by six months.
The first phase of the Bookkeeping Act took effect on July 1, 2024, impacting all companies currently required to submit an annual report under the Annual Accounts Act, specifically medium and large enterprises already using certified bookkeeping systems. From this date, these companies must ensure all accounting processes, including invoicing, are conducted digitally, starting from the first day of their next financial year.
The subsequent implementation phases are scheduled as follows:
January 1, 2025: The Act will extend to all companies required to submit an annual report under the Annual Accounts Act that use self-developed software.
January 1, 2026: The Act will apply to personally owned companies with an annual net turnover exceeding DKK 300,000 for two consecutive years (e.g., 2024 and 2025).
No additional phases are planned, meaning very small companies remain outside the scope of the Bookkeeping Act.
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