Denmark: VAT-registered entities subject to new digital bookkeeping requirements as of January 1, 2026
Applies to VAT-registered entities with turnovers exceeding DKK 300,000 for two consecutive years
The new rules under the Danish Bookkeeping Act requiring companies, as of January 1, 2025, to use digital bookkeeping systems that can handle electronic invoices (e-invoices) (read TaxNewsFlash) have been expanded to also cover all value added tax (VAT)-registered entities (even those not registered in Denmark and not otherwise required to file annual reports in Denmark) with turnovers exceeding DKK 300,000 for two consecutive years, effective from January 1, 2026.
New entities registered in Denmark after January 1, 2026, will be subject to the requirement once their net turnover exceeds DKK 300,000 for two consecutive fiscal years, based on actual net turnover and not expected turnover.
Read a May 2025 report prepared by the KPMG member firm in Denmark