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By 6.7 min readLast Updated: 23. November 2023

The most frequently asked questions about invoicing

You've got a customer online, completed the task, and now it's time to create an invoice and get the money home.

It is no small thing to get paid, and the first time you press "send" on an invoice is also something very special.

We have put together a simple overview of the most important terms that may be good to know when you need to send an invoice.

You stand and go send an invoice as a private person, you can click further to this guide, where we review the most important things you should be aware of in this connection.

What is an invoice?

The word invoice derives from Latin invoice, which means provision or execution. An invoice is used as a statement of a performance, service or goods delivered to a customer, and specifies prices and payment terms.

In other words, it is your document to the customer about what you have delivered and where (and when) the money should be sent.

One example of an invoice you can see here. If you need to download an invoice template, you can Download a free template.

Invoice requirements

There are a number of legal requirements that you must be aware of when you want to create an invoice.

The invoice must therefore clearly state:

  • The issue date – also referred to as the invoice date
  • Invoice number – it must be consecutive, i.e. you cannot jump in the order as you see fit
  • VAT number for you as a seller - if you are invoicing as a private person, you must enter your CPR number
  • Name and address of you as the seller
  • Your customer's name, address and CVR number (if it is a company)
  • Specification of the item or service – this is also called invoice lines
  • VAT base and discounts
  • Price excluding VAT
  • Price including VAT (your price e.g. VAT times 1.25)
  • Payment deadline and details of payment

This is the basics, but if you're hungry to read the heavy description, you can come up with more SKAT's website.

What is a normal payment term?

If your customer has not informed you of their normal payment terms, it is up to you to insert a reasonable payment term. That is, how long your customer has to move the money from their account to yours.

Large companies typically have a fixed process for when bills are paid, whereas smaller companies do not.

When should VAT be charged and when should you invoice without VAT?

9 out of 10 times your invoice will be subject to VAT. This means that 25% must be added.

There are a number of VAT-free services, such as teaching, health treatment, course and art services. If you carry out VAT-free processing, you must pay payroll tax.

E-invoice and electronic invoice

E-invoice and electronic invoice are different riffs on the same thing: an invoice sent by mail. However, it is more than that, and describes an electronic format for processing invoices between buyer and seller.

E-invoicing minimizes the chance of errors and allows you to post your invoices automatically. When invoicing the public sector, it is also a requirement that it be done as e-invoicing.

Can you invoice without your own company or CVR number?

Yes you can!

However, there are a number of things you should be aware of if you want to make and send one invoice without CVR number. Including insurance, tax and VAT. We have made a detailed guide to send invoice as a private person you can find here.

EAN invoicing

If your customers are among the big beasts under the auspices of the state, region, municipality, agencies, schools and hospitals, then your invoice must be sent electronically with an EAN number. An EAN number is your customer's electronic stamp and the way they can be identified. Many large companies also use EAN invoicing.

EAN is an abbreviation for "European Article Numbering", and is a 13-digit number.

What is a credit note?

A credit memo can be considered a reverse invoice, where the seller owes the buyer money. This may be in connection with a canceled sale, withdrawal of goods or other circumstances where the trade has to go back.

A credit note can, for example, be sent in connection with errors on an invoice, after which a correct invoice can be resent. The sale cannot simply be deleted, but must be posted accordingly the Accounting Act.

PO number

If you supply services or goods to larger companies, it will be the same EAN numbers most often used PO numbers. PO is an abbreviation for Purchase Order, called purchase order number in Danish, and is connected to the company's internal accounting system.

A PO number is typically issued through your contact at your customer. When that person creates the purchase of your service, a unique PO number is automatically issued and will either be sent to you as a supplier automatically or through your contact person, depending on the accounting system.

You must insert this PO number when you invoice your customer. In this way, your customer's accounting department knows which internal budget the purchase must be deducted from and posted against.

The PO number is therefore different from an invoice number, and both parts must appear on the invoice. 

A system for PO numbers is most often used as a tool to control budgets in larger companies. A PO number can only be issued when a supplier has been approved by Procurement (Purchasing Department), and often requires a certain rank before it can be approved.

For example, it could be said that a junior can create a purchase order up to DKK 20,000, after which his superior must approve. This superior can create a purchase order up to DKK 100,000, after which it must go up a layer to be approved.

You should also be aware of that

All companies in Denmark have bookkeeping obligation, which means that you, as a business owner, are obliged to keep accounting material for 5 years.
Many accounting programs automatically saves your accounting material, and when you use Factofly it's one thing you don't have to worry about.

invoice requirements
By 6.7 min readLast Updated: 23. November 2023

The most frequently asked questions about invoicing

You've got a customer online, completed the task, and now it's time to create an invoice and get the money home.

It is no small thing to get paid, and the first time you press "send" on an invoice is also something very special.

We have put together a simple overview of the most important terms that may be good to know when you need to send an invoice.

You stand and go send an invoice as a private person, you can click further to this guide, where we review the most important things you should be aware of in this connection.

What is an invoice?

The word invoice derives from Latin invoice, which means provision or execution. An invoice is used as a statement of a performance, service or goods delivered to a customer, and specifies prices and payment terms.

In other words, it is your document to the customer about what you have delivered and where (and when) the money should be sent.

One example of an invoice you can see here. If you need to download an invoice template, you can Download a free template.

Invoice requirements

There are a number of legal requirements that you must be aware of when you want to create an invoice.

The invoice must therefore clearly state:

  • The issue date – also referred to as the invoice date
  • Invoice number – it must be consecutive, i.e. you cannot jump in the order as you see fit
  • VAT number for you as a seller - if you are invoicing as a private person, you must enter your CPR number
  • Name and address of you as the seller
  • Your customer's name, address and CVR number (if it is a company)
  • Specification of the item or service – this is also called invoice lines
  • VAT base and discounts
  • Price excluding VAT
  • Price including VAT (your price e.g. VAT times 1.25)
  • Payment deadline and details of payment

This is the basics, but if you're hungry to read the heavy description, you can come up with more SKAT's website.

What is a normal payment term?

If your customer has not informed you of their normal payment terms, it is up to you to insert a reasonable payment term. That is, how long your customer has to move the money from their account to yours.

Large companies typically have a fixed process for when bills are paid, whereas smaller companies do not.

When should VAT be charged and when should you invoice without VAT?

9 out of 10 times your invoice will be subject to VAT. This means that 25% must be added.

There are a number of VAT-free services, such as teaching, health treatment, course and art services. If you carry out VAT-free processing, you must pay payroll tax.

E-invoice and electronic invoice

E-invoice and electronic invoice are different riffs on the same thing: an invoice sent by mail. However, it is more than that, and describes an electronic format for processing invoices between buyer and seller.

E-invoicing minimizes the chance of errors and allows you to post your invoices automatically. When invoicing the public sector, it is also a requirement that it be done as e-invoicing.

Can you invoice without your own company or CVR number?

Yes you can!

However, there are a number of things you should be aware of if you want to make and send one invoice without CVR number. Including insurance, tax and VAT. We have made a detailed guide to send invoice as a private person you can find here.

EAN invoicing

If your customers are among the big beasts under the auspices of the state, region, municipality, agencies, schools and hospitals, then your invoice must be sent electronically with an EAN number. An EAN number is your customer's electronic stamp and the way they can be identified. Many large companies also use EAN invoicing.

EAN is an abbreviation for "European Article Numbering", and is a 13-digit number.

What is a credit note?

A credit memo can be considered a reverse invoice, where the seller owes the buyer money. This may be in connection with a canceled sale, withdrawal of goods or other circumstances where the trade has to go back.

A credit note can, for example, be sent in connection with errors on an invoice, after which a correct invoice can be resent. The sale cannot simply be deleted, but must be posted accordingly the Accounting Act.

PO number

If you supply services or goods to larger companies, it will be the same EAN numbers most often used PO numbers. PO is an abbreviation for Purchase Order, called purchase order number in Danish, and is connected to the company's internal accounting system.

A PO number is typically issued through your contact at your customer. When that person creates the purchase of your service, a unique PO number is automatically issued and will either be sent to you as a supplier automatically or through your contact person, depending on the accounting system.

You must insert this PO number when you invoice your customer. In this way, your customer's accounting department knows which internal budget the purchase must be deducted from and posted against.

The PO number is therefore different from an invoice number, and both parts must appear on the invoice. 

A system for PO numbers is most often used as a tool to control budgets in larger companies. A PO number can only be issued when a supplier has been approved by Procurement (Purchasing Department), and often requires a certain rank before it can be approved.

For example, it could be said that a junior can create a purchase order up to DKK 20,000, after which his superior must approve. This superior can create a purchase order up to DKK 100,000, after which it must go up a layer to be approved.

You should also be aware of that

All companies in Denmark have bookkeeping obligation, which means that you, as a business owner, are obliged to keep accounting material for 5 years.
Many accounting programs automatically saves your accounting material, and when you use Factofly it's one thing you don't have to worry about.