Documentation requirements for EU trade
When you sell goods to a buyer in another EU country, you should always be able to document that the goods are dispatched or transported to the other EU country. Such documentation is a requirement in order for you to sell the goods without charging Danish VAT.
When the seller delivers the goods, he may issue an invoice inclusive of Danish VAT and later repay the VAT to the buyer once the documentation has been received from the buyer.
In order for you to sell goods and services exclusive of Danish VAT, you have to obtain and verify the VAT number of the buyer in the relevant EU country. Additionally, you have to submit the buyer’s VAT number to us. Remember to keep documentation for having chekced the VAT number.
You can verify the business VAT numbers here:
Danske virksomheder, der sælger varer eller ydelser til virksomheder i andre EU-lande, skal udstede en fuld faktura med købers momsregistreringsnummer.
Sale of goods to other EU countries
When you sell goods to other EU countries, the invoice must also state that the delivery is exempt from VAT as the buyer has to calculate VAT receivable. You can refer to the following:
- the relevant rule of the VAT act, for example section 34(1) of the Danish VAT Act, or
- the relevant rule of the directive on the common system of value added tax, for example article 138, or
- other specific marking, for example "Free of VAT", "Zero-rated".
Sale of services to other EU countries
When you sell services to other EU countries, the invoice must also state that the delivery is subject to reverse charge, meaning that the buyer settles the VAT. You can refer to the following:
- the relevant rule in the VAT Act
- the relevant rule in the directive on common system of value added tax
- any other specific marking, including "reverse charge"
If you apply the new harmonised European documentation requirements, the authorities will assume that you meet the documentation requirements as the seller.
You are not obliged to apply the harmonised EU documentation requirements. But if you will not do so, you will have to apply the national rules applicable in the EU country you trade with. If, for example, you sell and dispatch goods from Denmark, you have to apply the Danish rules.
The documentation requirements depend on whether you as the seller carry out or organise the transport or if you let the buyer carry out or organise the transport.
Such documentation could be documents related to the transport or dispatch of the goods, for example:
- a signed CMR document (document used for border-crossing road transport) or a consignment note
- a document for loaded goods in which the shipmaster has signed for the goods and taken on the responsibility to deliver the goods to the right recipient (a bill of lading)
- an air bill
- an invoice from the carrier of the goods
Or one of the following types of proof:
- an insurance policy relating to the transport or dispatch of the goods or a bank statement to prove payment of the transport or dispatch of the goods.
- documents issued by public authorities, a notary for example, confirming the arrival of the goods in the buyer’s country.
- a receipt issued by the owner of the warehouse in the EU country where the goods arrive confirming that the goods will be stored in this country.
Documentation when you (the seller) carry out or organise the transport
There are two types of correct documentation:
- You either need at least two separate documents concerning the transport or dispatch of the goods.
- Alternatively, you should have one document concerning the transport or dispatch and one of the other documents of proof.
The two documents or the document and the proof may not contradict each other. Additionally, the documentation should be issued by two different parties independent from each other, the seller and the buyer.
Documentation when the buyer carries out or organises the transport
As the seller you need several types of documentation when the buyer carries out or organises the transport. You need a written statement from the buyer stating that the goods have been transported or dispatched by the buyer personally or by third party paid for by the buyer. The buyer should provide the written statement for the seller by no later than the 10th day of the month after the delivery.
The written statement should include:
- date of issue of the statement
- name of EU destination country
- name and address of the buyer
- quantity and type of goods
- date and place of arrival of the goods
- identification of the person to receive the goods on behalf of the buyer
If the goods are vehicles or other means of transport, the statement should also include the registration number of the means of transport being delivered.
Moreover, you need:
- Either at least two separate documents concerning the transport and dispatch of the goods confirming the transport or dispatch.
- Alternatively, you should have one document concerning the transport or dispatch and one of the other documents of proof confirming the transport or dispatch.
The two documents or the document and the proof may not contradict each other. Additionally, the documentation should be issued by two different parties independent from each other, the seller and the buyer.
If you do not want to apply the harmonised documentation requirements, please note that you will then have to apply the national rules of the EU country you are trading from. If, for example, you sell and dispatch goods from Denmark, you have to apply the Danish rules.
In Denmark, the person who collects the goods should provide the seller with supplementary information enabling the seller to identify the person collecting the goods at the time of handing over of the goods. This information could be a copy of a driving license or similar documentation. If the documentation includes a readable signature, the person should also sign (with a readable signature) for collecting the goods.