Danish companies are direct, digital-first buyers who expect clean invoices and clear payment details. To export services to Denmark from India, agree whether you invoice in Danish kroner, euros or dollars, give the client bank details that work for an international transfer to an Indian account, and list each invoice on your monthly EDF with "Denmark" in the Part 2B country column. Realisation then runs for 9 months from each invoice date.
Key takeaways
- Denmark is in the EU but uses the Danish krone. Clients may offer to pay in DKK or EUR; dollars are possible too.
- Indian accounts do not have an IBAN. Expect to explain that your bank uses an account number plus SWIFT code.
- Your client deals with any Danish VAT on its side; ask them how they want your invoice to read, and confirm whether any withholding applies.
- India and Denmark have a tax treaty. Speak to your CA if a client mentions withholding or asks for residency proof.
- One EDF per month covers all your Danish (and other) invoices, due within 30 days from the end of the month.
Five things to settle before the first invoice
| Topic | Question to ask the client | Why it matters |
|---|---|---|
| Currency | DKK, EUR or USD? | Drives your rupee receipt and the Part 2B currency column |
| Payment method | International transfer from which bank? | Some payment systems expect an IBAN; you will need to explain your details |
| Invoice requirements | Purchase order number? Specific fields? Electronic format? | Missing references delay approval |
| Payment terms | Days after invoice, and who pays transfer charges? | Affects cash flow and the amount realised |
| Tax | Any withholding? How should VAT be described? | Avoids short receipts and rework |
Put the answers in your contract or statement of work. Part 2B asks for the contract number and date on every row, so a signed agreement is useful anyway.
Currency choice: kroner, euros or dollars
Danish clients may be relaxed about currency, particularly larger ones with euro accounts. Euro invoicing is popular with Indian exporters who also bill other European clients, because it keeps pricing consistent. Kroner invoicing is friendliest to smaller Danish clients. Dollar invoicing works if both sides are comfortable with it.
If you receive regular euro payments, ask your bank whether an EEFC account would help you hold some receipts in foreign currency rather than converting immediately. Whatever the currency, the FIRA for each payment should show it.
The IBAN question
European payment forms often ask for an IBAN. Indian bank accounts do not use IBANs. Your client's bank will instead need:
- Your account name exactly as held at the bank.
- Your account number.
- Your bank's name and branch address.
- Your bank's SWIFT code.
- Any intermediary or correspondent bank details your bank recommends for the currency.
Put these on every invoice and in a one-page bank details letter. Our article on bank details on an export invoice explains what to include and why intermediary details sometimes matter.
VAT, withholding and the treaty
Danish VAT is the client's concern, not yours, but the client's accounts team may ask that your invoice show certain wording about who accounts for VAT. Ask them. On your side, if you are GST-registered and exporting under LUT, your invoice should state "Supply meant for export under LUT without payment of IGST".
Ask whether the client expects to withhold any tax on your fees. We are not aware of a basis for stating a general rule here, so confirm case by case. India has a tax treaty with Denmark; if withholding comes up, or the client asks for proof of your Indian tax residency, involve your CA. Our DTAA basics cover how treaty relief generally works.
Filling the EDF for Danish clients
The form is the same for every country. For Danish clients:
- Part 2B country column: Denmark.
- Currency column: DKK, EUR or USD as invoiced.
- Recipient name and address: the client's legal name. Danish company names often end in "ApS" or "A/S"; include it.
- Field 1.17 Country of final destination: Denmark if all invoices on that EDF are to Danish clients; otherwise follow your bank's guidance.
A worked example
Teal Orchard UX Pvt Ltd in Pune designs apps for two Copenhagen clients and one in Berlin. Its January 2027 invoices:
| Invoice | Client | Country | Currency | Amount | INR value |
|---|---|---|---|---|---|
| TO/27/004 | Havnelys ApS | Denmark | DKK | 62,000 | ₹7,58,000 |
| TO/27/005 | Bølge Mobility A/S | Denmark | EUR | 14,500 | ₹13,34,000 |
| TO/27/006 | Quellwerk GmbH | Germany | EUR | 6,200 | ₹5,70,000 |
Teal Orchard files one January EDF with three rows and ₹26,62,000 in field 1.22. January 2027 invoices are due by 2 March 2027, because February 2027 has only 28 days.
The Bølge invoice exceeds ₹10 lakh, so closing its EDPMS entry will need the invoice, FIRA and matching instructions. The other two can go on Teal Orchard's quarterly realisation declaration.
Realisation timing
Each invoice must be paid in full within 9 months from its date (12 months for rupee invoices).
| Invoice date | Agreed terms | Expected payment | Realisation deadline |
|---|---|---|---|
| 12 January 2027 | 30 days | 11 February 2027 | 12 October 2027 |
| 29 January 2027 | 30 days | 28 February 2027 | 29 October 2027 |
| 18 February 2027 | 45 days | 4 April 2027 | 18 November 2027 |
If a client disputes a deliverable or a payment stalls, act early: chase in writing, and if needed ask your bank for an extension with reasons before the deadline.
Common snags with Danish clients
- Payment returned for missing IBAN. Send your bank details letter and ask the client's bank to route by SWIFT code and account number.
- Charges deducted along the way. Agree in the contract that the sender pays transfer charges if you want the full amount.
- Invoice rejected for a missing purchase order number. Ask for the PO before you invoice.
- Purpose code mismatch. Tell your bank the right code for your service so the FIRA is correct first time.
This is general information, not legal or tax advice.
Frequently asked questions
Should I invoice Danish clients in DKK or EUR?
Either is fine if agreed in the contract. Euros suit exporters with several European clients; kroner may be easier for smaller Danish clients. Enter the invoiced currency in the Part 2B currency column.
My Danish client asks for an IBAN. What do I give them?
Indian accounts do not have IBANs. Provide your account number, account name, bank name and address, SWIFT code and any intermediary bank details your bank recommends.
Does Denmark withhold tax on Indian service fees?
Do not assume either way. Ask your client, and involve your CA if withholding is mentioned. India has a tax treaty with Denmark that may affect the outcome.
What goes in the EDF country column for a Danish client?
"Denmark", on each Part 2B row for that client. One EDF can include clients from several countries.
How long do I have to receive payment?
Nine months from the invoice date for foreign-currency invoices, 12 months for rupee invoices. Your AD bank can extend on a reasoned request.
Bottom line
Exporting services to Denmark is straightforward once currency, bank details and tax questions are settled in the contract. Then it is one EDF a month, with "Denmark" in the country column, and a watch on each invoice's 9-month clock. Prepare your monthly form with the free EDF form generator and your invoices with the export invoice generator.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.