Invoice requirements

The term invoice claim colloquially refers to two things: requirements for the content of an invoice and, in a debt collection context, that a creditor has a financial claim against a debtor based on an invoice.

In this article, we focus on both: the requirements for an invoice and the concept of invoice requirements in a debt collection context.

All debt recovery and debt collection is based on one or more financial claims between a borrower and lender - or a debtor and a creditor.

These claims can arise from a wide range of circumstances, such as non-payment of taxes, duties, fines, wage claims, loans and the like.

The typical claims handled by a debt collection agency or debt collection lawyer today are often invoice claims - that is, where a company has sent an individual or another business an invoice for a product or service that has not been paid.

Requirements for an invoice

From time to time, the term invoice requirements is used to describe the requirements for an invoice - and thus what an invoice must contain to be legally compliant. The requirements for an invoice can be found in the Executive Order on Value Added Tax - commonly known as the VAT Executive Order. Here, the term "invoice requirements" is used to describe the requirements for the content of the invoice.

You can find all invoice requirements in chapter 22, section 58 of the VAT Executive Order.

Most modern accounting software and ERP solutions now create an invoice for you that is legal and valid - if you fill it out correctly.

If you're using a modern accounting or ERP system today, you'll probably already be able to send a legal invoice to your customers - and thus comply with all invoice requirements.

Invoice requirements include:

• Date of issue
• Consecutive invoice number
• Seller's registration number (e.g. CVR number)
• Buyer name and address
• The quantity and nature of the goods delivered
• The tax base
• Applicable tax rate
• The taxable amount to be settled

There are basically no invoice requirements for the format, size, design or appearance of an invoice.

However, we still recommend that you use an invoice template to ensure you comply with all invoice requirements.

You can read more about invoices here.

Why are invoice requirements important?

If your company does not issue an invoice correctly and thus does not comply with the requirements for an invoice, you risk that the company that buys the goods from you cannot deduct the VAT on your invoice - or that the company's inventory and purchasing function fails, for example if the wrong items are listed or in the wrong quantities.