What is an invoice?

The simple definition

An invoice (faktura) is a document you send to a client after completing work or delivering goods. It states the amount the client owes you, the due date and your payment details. Once the client pays, the invoice is settled.

For freelancers and sole traders in Denmark, an invoice is also a legal document: it is the record of the transaction for both parties' bookkeeping and it must contain certain fields to be valid for VAT purposes.

What a Danish invoice must contain

Under Danish law (Momsbekendtgørelsen / the VAT Directive), a VAT invoice must include:

• Seller's name, address and CVR number (Danish company registration number)
• Buyer's name and address (full name and address for invoices above DKK 3,000 excl. VAT)
• A unique, sequential invoice number
• Invoice date and supply date (if different)
• Description of the goods or services delivered
• Quantity and unit price
• The taxable amount and VAT amount (at the applicable rate)
• Total amount including VAT

When do you need a CVR number — and which business type?

To trade as a self-employed person in Denmark you register a business with Erhvervsstyrelsen (free, via virk.dk) and get a CVR number. Which business type you need depends on your turnover:

• Under DKK 50,000 in a calendar year — a Personligt ejet Mindre Virksomhed (PMV) is usually enough. A PMV gets a CVR number but cannot be VAT-registered, so you charge no VAT and file no VAT returns. It cannot have employees, and you renew the CVR every 3 years.
• Once your taxable turnover exceeds DKK 50,000 in a calendar year — the threshold is measured per calendar year and resets on 1 January (Momsloven § 71 e). At that point a PMV no longer suffices: you register (or convert the PMV) to an enkeltmandsvirksomhed (sole proprietorship) and register it for VAT.

Below the DKK 50,000 threshold you are exempt from VAT and do not charge it — but you still need a CVR and must issue proper invoices.

What if you are not VAT-registered?

If your turnover is under DKK 50,000 in a calendar year, you do not charge VAT. Your invoice still needs your name, CVR, a sequential number, date, description and total — but no VAT line. Add a note stating you are exempt under Momsloven § 71 e. PennaPay adds this note automatically when you select "Private person / not VAT-registered".

Read the full guide: Invoice without VAT — when and how.

Invoice vs. receipt vs. offer

• Offer (tilbud): A non-binding price proposal before work starts.
• Invoice (faktura): A binding payment demand issued after delivery.
• Receipt (kvittering): Confirmation that payment has been received.
• Credit note (kreditnota): A document that cancels or corrects a previously issued invoice.

How long must you keep invoices?

Under Bogføringsloven (the Danish Bookkeeping Act, 2022), you must retain all accounting material — including invoices — digitally for at least 5 years from the end of the financial year.

PennaPay stores all issued invoices on your account so you can download or export them at any time. For your annual accounts, export to Billy or download as PDF or CSV for your accountant.