Last Update: February 13, 2026

What is debt collection billing in Denmark?

The debt collection billing (Inkassoopgørelse) is a detailed statement of all outstanding amounts a debtor must pay. It includes not only the original invoice but also interest, reminder fees, and collection costs.

In Denmark, this statement is required by law. Its purpose is to ensure that the debtor fully understands why they are being asked to pay a specific amount. Without this breakdown, many costs—such as collection fees—may not be charged at all. The goal: to avoid disputes and make the process fair for both parties.

What costs may be included in the debt collection billing?

In Denmark, there are clear legal guidelines on which costs creditors are allowed to list:

Principal claim: The outstanding invoice amount including VAT.
Interest: According to the Renteloven, from the due date, usually the National Bank’s reference rate + 8 percentage points.
Reminder fees: Up to three reminders at 100 DKK each, with at least ten days in between.
Flat-rate compensation (B2B only): 310 DKK as lump sum compensation between businesses.
Collection initiation fee: Up to 100 DKK for starting the procedure.
Out-of-court collection costs: Capped by law depending on the principal claim amount.
VAT on collection costs: Only relevant if the creditor is not eligible for VAT deduction.

All items must be clearly and transparently listed. Excessive or unclear invoices are not permitted.

Why do I sometimes receive less money from the collection agency as a creditor?

Creditors may be confused when the amount they receive is lower than the sum the debtor transferred. This is usually due to VAT on collection costs or an agreed success fee.

VAT on collection costs

Collection agencies in Denmark are required to charge 25% VAT on their services. However, this tax usually may not be passed on to the debtor because it is not considered a damage caused by delay.

This means:

The debtor pays the principal claim + net collection costs.
The VAT is paid directly to the tax office by the collection agency.
The VAT is deducted from the amount paid out to the creditor.

If the creditor is entitled to deduct input VAT, they can reclaim the VAT later via their VAT return.

Example

Principal claim: 10,000 DKK
Collection costs (net): 1,200 DKK
Total debtor payment: 11,200 DKK
VAT deduction (25% of 1,200 DKK): 300 DKK
Payment to creditor: 10,900 DKK

Success fee in debt collection

Many collection agencies operate with a success fee. This means they are only paid if collection is successful—usually as a percentage of the amount recovered.

When may a debt collection billing be issued?

Before creditors can issue a debt collection billing, the debtor must have received an inkassovarsel (warning notice) according to §10 of the Inkassoloven. This letter announces the start of the collection procedure and gives the debtor at least ten days to settle the debt without additional costs. Only after this period can collection costs be calculated and invoiced.

What does a debt collection billing include?

A complete billing statement must contain the following details:

Name and address of creditor and debtor, with CVR/CPR numbers if applicable
File or reference number
Breakdown of outstanding invoices with date and invoice number
Overview of interest, reminder fees, collection fees, collection costs
Indication of whether amounts include or exclude VAT
Total amount
Payment instructions (bank details, payment deadline)
Notice of consequences in case of non-payment (e.g. legal action or credit agency reporting)

What is the difference between in-house and third-party debt collection?

In Denmark, a distinction is made between in-house and third-party collection:

In-house collection: The creditor handles collection directly. Cost limits are lower, and amounts are inclusive of VAT.
Third-party collection: A collection agency or lawyer is hired. Costs are higher, and whether VAT is passed on depends on the creditor’s VAT status.

What happens in the case of partial payments?

Partial payments are usually applied first to interest, then to costs, and lastly to the principal claim. This order helps keep additional running costs as low as possible. Creditors should clearly state this logic in their terms and conditions or collection letters.

Who monitors compliance with the rules?

Compliance is strictly regulated in Denmark:

Politi (PAC): Responsible for licensing and overseeing collection agencies.
Forbrugerombudsmanden (Consumer Ombudsman): Ensures fair practices and consumer protection.

Violations can have serious consequences: fines, loss of the collection license, or exclusion from cost reimbursement.

What happens if the debtor doesn’t pay?

If the debtor fails to pay even after out-of-court collection, creditors have two options:

Betalingspåkrav: A simplified procedure for undisputed claims up to 100,000 DKK.
Civil lawsuit: A regular litigation process for disputed or especially large claims.

Both options are more costly and time-consuming, so reaching an out-of-court agreement is often worthwhile.

How does the process work?

Before the assignment, the success fee percentage is agreed upon.
After successful recovery, the fee is deducted from the total amount.
The remaining amount is paid out to the creditor.

What should creditors keep in mind?

The success fee may vary between collection agencies.
Contract terms should be clearly and understandably formulated.
A reputable collection agency is transparent about all costs and complies with legal requirements.