Denmark has long been recognized as a trailblazer in electronic invoicing (e-invoicing). From its pioneering role in B2G invoicing to its adoption of secure communication frameworks, Denmark continues to set a high standard for digital finance across Europe.
In this post, we’ll explore the key points of Denmark’s e-invoicing process, examine recent legislative changes such as the Bookkeeping Act, and discuss how Melasoft’s comprehensive solutions can help businesses meet these evolving requirements.
Pioneering Role in B2G E-Invoicing
Early Adoption: Denmark has been a leader in business-to-government (B2G) e-invoicing since 2005, demonstrating its commitment to digital transformation.
EU Directive Compliance: The Directive 2014/55/EU mandates that all central, regional, and local authorities in Denmark receive and process electronic invoices. Suppliers to public entities must also submit e-invoices.
Streamlined Administration: By digitizing the invoicing process, Denmark has greatly reduced paperwork and improved the efficiency of public procurement.
European and National Standards
European Standard (EN-16931): Denmark follows the European e-invoicing standard EN-16931, which guarantees interoperability across EU member states.
UBL and OIOUBL: The country uses the Universal Business Language (UBL) 2.1 along with a localized version called OIOUBL (based on UBL 2.0). These standards ensure consistency and clarity in invoice data.
Peppol BIS Billing 3.0 & NemHandel: Peppol BIS Billing 3.0 and the NemHandel platform are foundational components of Denmark’s e-invoicing infrastructure, enabling swift and secure exchange of invoice data.
Secure Communication Framework
Denmark ensures the security of e-invoices through OIORASP (OIO Reliable Asynchronous Secure Profile), a protocol that enables secure electronic communication between government bodies and their suppliers.
This secure framework promotes transparency, reduces administrative burdens, and guarantees reliable invoicing processes.
Options for Current B2B Invoicing
While e-invoicing is mandatory for businesses dealing with the public sector, it remains optional in the B2B space — at least for now. Danish businesses currently have several invoicing methods to choose from:
Paper-based invoices
PDF invoices with e-signatures or audit trails
Electronic Data Interchange (EDI)
This flexibility allows companies to transition to digital invoicing at their own pace before the upcoming legislative requirements take effect.
Impact of the 2022 Bookkeeping Act
The 2022 Bookkeeping Act mandates the digitalization of all accounting and invoicing processes across Danish businesses. Companies must either:
Use certified digital bookkeeping software approved by the Danish Business Authority (ERST), or
Implement custom solutions that fully comply with the new legal standards.
This legislation marks a significant push toward complete digital integration in Denmark’s financial ecosystem.
Phased Implementation Timeline
The Danish authorities have outlined a clear roadmap for businesses transitioning to mandatory e-invoicing:
January 1, 2024: Certified digital bookkeeping systems are published by the authorities.
July 1, 2024: Medium and large companies using certified accounting software must comply with the new requirements.
January 1, 2025: Medium and large companies using custom bookkeeping solutions must comply.
January 1, 2026: Financial companies of all sizes and personally-owned companies with an annual turnover exceeding 300,000 DKK (~40,000 €) must comply.
This step-by-step approach ensures that organizations have sufficient time to upgrade or integrate new systems without disrupting day-to-day operations.
Applicability of the Bookkeeping Act
Who Must Comply?: All entities required to submit annual reports under the Danish Annual Accounts Act fall under the Bookkeeping Act.
Archiving: Invoices, whether electronic or paper-based, must be archived for a minimum of five years.
OIOUBL 3 Invoice Package: Release Candidate
The Nemhandel team at the Danish Business Authority has released the OIOUBL 3 Invoice package as a Release Candidate, inviting feedback by March 6, 2025.
Here are the key highlights:
Business Interoperability Specification (BIS): Covers invoice, credit note, and invoice response.
Message Level Response: Two profiles — “Message Level Response” and “Message Level Response — Network” — define how responses to invoices are handled.
Migration Plan and Syntax Bindings: Detailed guidance on transitioning to these updated specifications, including field definitions for the four document types (Invoice, credit note, invoice response, and message level response).
Testing Availability: The release is open for testing purposes, but production data should only be used once the Final Release is published in April 2025.
Melasoft’s Comprehensive E-Invoicing Solutions for Danish Businesses
Navigating the changing landscape of Danish e-invoicing can be complex. Melasoft offers robust solutions that streamline compliance and simplify the entire invoicing cycle:
Peppol Access Point Service: Seamlessly exchange e-invoices via the Peppol network to meet both B2G and B2B requirements.
Support for OIOUBL and UBL Formats: Generate and process invoices in the mandated formats (OIOUBL and Peppol BIS 3.0), ensuring compliance and interoperability.
Digital Bookkeeping Integration: Adopt certified digital bookkeeping systems that align with Denmark’s Bookkeeping Act through Melasoft’s expert guidance.
End-to-End E-Invoicing Solution: From invoice generation to secure submission and archiving (via OIORASP), Melasoft provides a comprehensive platform.
Training and Support: Receive ongoing training and support to ensure a smooth transition to Denmark’s new e-invoicing requirements.
Conclusion
Denmark’s approach to e-invoicing exemplifies a clear commitment to innovation, compliance, and efficiency. From the early adoption of B2G e-invoicing to the newly enforced requirements under the Bookkeeping Act, Denmark continues to lead Europe in digitizing financial processes. As the country prepares to make B2B e-invoicing mandatory, businesses have a golden opportunity to streamline operations and improve transparency. With powerful tools such as the NemHandel platform, Peppol BIS Billing 3.0, and robust frameworks like OIORASP, Danish companies are well-equipped to handle modern invoicing challenges.
For organizations seeking to ensure compliance and stay ahead of upcoming changes, Melasoft stands ready with comprehensive solutions, expert guidance, and dedicated support. Embracing digital transformation today will not only future-proof your business but also strengthen Denmark’s position as a global leader in e-invoicing and digital finance.
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