Denmark Introduces New Requirements for Digital Accounting Systems: Digital Booking Systems, e-invoicing & SAF-T

Denmark is using digitalization as a measure to improve its accounting and invoicing processes. The Danish Bookkeeping Act has endured substantial changes, including promoted digitalization and proposed new requirements for digital accounting systems. Furthermore, e-Invoicing and Standard Audit File for Tax (SAF-T) have now been enforced in Denmark to simplify tax compliance and record-keeping.

Digital Booking Systems:

The Danish Bookkeeping Act, read with BEK no. 1342 of 24/11/2023, requires businesses to digitize their financial records, promoting improved financial monitoring and decision-making. Thus, businesses must use approved digital accounting systems that comply with specific government standards. Therefore, the deadline for full compliance is set for 2027, with a gradual rollout to ease the transition.

Rollout Phases:

• Approval by Danish authority
• Compliance with defined requirements
• Digital recording and storage of transactions
• Automated backup of records
• Integration with eInvoicing and SAF-T systems

Requirements and Deadlines:

• July 2024: Taxpayers with an obligation to submit and annual report according to the Annual Accounts Act that use a registered bookkeeping system, must post digitally from first date they start a new financial year.
• Jan 2025: Taxpayers with an obligation to submit an annual report according to the Annual Accounts Act that use a non-registered bookkeeping system, must post digitally from first date they start a new financial year.
• From 2026: Personally owned companies with an annual net turnover of more than DKK 300,000.00 in two consecutive years (e.g. 2024 and 2025), must post digitally from 2026.

e-invoicing in Denmark:

Since 2005, Denmark has required e-invoicing for B2G transactions, using PEPPOL BIS 3.0 and OIOUBL formats through the NemHandel and Peppol platform. Moreover, the government is also considering the introduction of electronic ordering and cataloging for specific categories of goods, aiming to promote e-commerce within the public sector.

Requirements and Deadlines:

• Jan 2024: Taxpayers with annual Erhvervsstyrelsen reporting obligations
• Jan 2026: Other businesses with a turnover higher than DKK 300,000
• July 2026: In-house developed accounting systems

SAF-T for Denmark:

SAF-T, an international standard for digital record-keeping and tax compliance, is enforced in Denmark. Furthermore, companies are required to keep digital records of their financial transactions in line with the OECD framework, similar to the UK’s Making Tax Digital initiative.

SAF-T Requirements and Deadlines:

• Jan 2024: Businesses with annual Erhvervsstyrelsen reporting obligations
• Jan 2026: Other businesses with turnover higher than DKK 300,000
• July 2026: In-house developed accounting systems

Denmark has thus rolled out digital booking systems, e-invoicing, and SAF-T to simplify accounting, invoicing, and tax compliance processes. The implementation deadlines are spread over multiple years to give businesses time to adapt. This move toward digitalization is designed to improve efficiency, reduce fraud, and strengthen e-commerce.

Undoubtedly, contact VAT IT Compliance to assist you with the New Requirements for Digital Accounting Systems in Denmark.