60 second guide: invoice foreign customers

How to create an invoice abroad

In general, an invoice to a foreign country should contain the same information as an invoice to a Danish company - except that we are now talking about invoicing in English.

Therefore, you create the invoice in the same way as a regular invoice for a Danish company. If your customer speaks English and not Danish, you can quickly change the language of your invoice to English in your accounting program.

The following information must be on an invoice to a foreign country:

• Invoice date
• Invoice number
• Seller's name, address and VAT number
• Buyer name and address
• Description and quantity of goods sold
• Item price with or without VAT
• Discounts
• Delivery date (date of completed work)
• Possible VAT amount

When selling to a VAT-registered company in a country in Europe, make sure to include this on your invoice:

• Country code in connection with your own VAT number
• Customer's country code and VAT number
• VAT number is used in the same way as the Danish CVR number

Is VAT required on invoices to foreign countries?

When it comes to VAT on invoices to foreign countries, a distinction is made between whether you're invoicing businesses or private individuals, whether the customer is located inside or outside the EU, and whether you're selling goods or services. Here, countries outside the EU are referred to as "the world" and EU countries as the EU.

As a general rule, however, Danish VAT is usually not charged on an invoice to a foreign country if it's for a business. In most cases, the customer is responsible for reporting and paying the VAT in the country they belong to - depending on the VAT rules in the applicable country.

A VAT example:
A customer who is a company from, for example, the Netherlands and buys a service from you does not normally have to pay Danish VAT. Instead, they are obliged to follow the VAT rules that apply in the Netherlands. This is called 'reverse charge'.

VAT when trading with businesses in the EU

Sales of services to other companies in the EU are usually exempt from Danish VAT, which must also appear on the invoice. This is where the main rule of reverse charge usually applies. Read more about this here.

VAT when trading with businesses in the world (outside the EU)

Sales of services to businesses in the world are usually also exempt from Danish VAT. However, there are a few exceptions, depending on the service you sell, and there are also certain requirements you need to meet. Read more about these here.

VAT when trading with private individuals in the EU

Sales of services to private individuals in the EU are generally not exempt from VAT. This must therefore also be indicated on the invoice with Danish sales VAT (25%).

However, the EU has set a limit for significant sales of a maximum of €35,000.

This means that if sales exceed this amount, VAT will be charged according to the rules of the customer's home country.

You can read more about requirements and rules here.

VAT when trading with private individuals worldwide (outside the EU)

Sales of services to private individuals must generally be charged Danish sales VAT. However, as always, there are exceptions where you only have to charge Danish VAT for certain types of services if the service is used in Denmark. Read more about these here.

Invoices in foreign currency

If you need to invoice in a foreign currency, the Danish price in DKK must be converted to the currency you want to invoice your customer in, e.g. EUR.

When you convert from Danish kroner to another currency, there may be an exchange rate difference that needs to be booked.

If the invoicing is in a foreign currency other than euros and there is VAT on your invoice, the VAT amount must also be described in Danish kroner.

💡 Fortunately, there are many invoicing services that make it much easier and time-saving for you. You'll often find different functions for your foreign invoices in your accounting program if you haven't yet chosen the easy solution with Factofly.

With Factofly, you can easily create an invoice abroad and choose the currency of your invoice - without having to think about anything else.

Are you unsure about your international invoice?

If you're still in doubt about your specific situation, whether your sale is exempt from VAT or otherwise, you can always make sure by contacting Skat.

💡 You can also create your foreign invoice with Factofly and we'll make sure that the invoice is correct, that all rules are followed and that the invoice is sent correctly to your foreign customer.

If you have an accountant or bookkeeper, he or she will also be able to advise and guide you if you are unsure about invoicing your foreign customers.

See also our free invoicetemplate for private individuals without cvr here.