It is crucial for companies operating in Denmark to stay compliant on digital reporting standards. With the implementation of VIDA (VAT in a Digital Age) and the new bookkeeping system requirements, businesses face evolving challenges in digital tax compliance.
What is E-Invoicing and SAF-T?
E-invoicing refers to the electronic exchange of invoice documents between businesses, streamlining the billing process and reducing the risk of errors. It is a mandatory requirement for businesses in Denmark, to be able to send, receive and store E-invoices. Consequently, as for now this is solely a functionality requirement.
SAF-T is a standardized format for electronic exchange of accounting data, facilitating audits and ensuring compliance with tax regulations. It enables tax authorities to access and review financial data efficiently, promoting transparency and accountability. For now, it is only a requirement to be able to generate a SAF-T file including header information in Denmark.
Why is it important?
Countries all over the world are in the process of implementing E-invoicing and digital reporting solutions, that can differ from country-to-country, which entails a complex task for businesses operating across borders.
In Denmark, the Danish Bookkeeping Act is a step in the direction towards digitalization of bookkeeping and VAT reporting, that imposes requirements on companies established in Denmark and from 2026 also on companies registered for VAT purposes in Denmark.
