Service agreement in Denmark: Template, Key Clauses and Local Law (2026)

What a service agreement is in Denmark A service agreement is a business to business contract under which one party supplies services to another for payment, covering IT, consulting, marketing, facilities and more. Denmark has no single statute dictating the form of a commercial service agreement, so freedom of contract is wide and the written terms govern. The background rules come from general Danish contract law, including the Contracts Act (aftaleloven), and for some arrangements the Sale of Goods Act applies by analogy, but for pure services the contract itself is the main source. As an EU member, Denmark applies EU derived rules on data protection and, for consumer facing deals, consumer protection. A business to business service agreement should account for these where relevant. This page is general information, not legal advice. ## The local rules that shape a Danish service agreement - VAT (moms). The standard Danish VAT rate is 25 percent, among the highest in the EU, and most services from a VAT registered business carry VAT. The contract should state whether the fee is inclusive or exclusive of VAT, and a business must register for VAT once taxable turnover passes the statutory threshold.

• Data protection. The EU General Data Protection Regulation applies directly, supplemented by the Danish Data Protection Act. Where the supplier processes personal data for the customer, a written data processing agreement is required.
• Freedom of contract, with limits. Parties set their own terms, but the Contracts Act lets a court modify or set aside an unreasonable term under section 36, and a duty of good faith applies.
• Interest on late payment. The Danish Interest Act (renteloven) sets a default interest rate on overdue commercial invoices. ## A service agreement template you can adapt ``` SERVICE AGREEMENT Date: [date] Supplier: [name, CVR number, address] Customer: [name, CVR number, address] 1. SERVICES The Supplier will provide: [clear description, or a reference to an Appendix or Statement of Work]. 2. TERM This agreement starts on [date] and runs [until completion / for [period] / until terminated under clause 9]. 3. FEES AND VAT The Customer pays [amount or rate]. Fees are [inclusive / exclusive] of VAT at 25 percent. Invoices are payable within [number] days; overdue amounts carry interest under the Interest Act. 4. PERFORMANCE The Supplier performs with professional skill and care and meets [any service levels in the Appendix]. 5. CUSTOMER OBLIGATIONS The Customer provides [access, information and materials] the Supplier needs. 6. INTELLECTUAL PROPERTY [Deliverables assigned to the Customer on payment, or licensed; the Supplier keeps background IP.] 7. CONFIDENTIALITY Each party keeps the other's confidential information private during and after the term. 8. DATA PROTECTION Where the Supplier processes personal data for the Customer, the parties enter a data processing agreement under the GDPR and the Danish Data Protection Act. 9. LIABILITY AND TERMINATION [Liability cap and exclusion of indirect loss, reasonable and clear.] Either party may terminate on [period] notice or for material breach not remedied within [number] days. 10. GOVERNING LAW This agreement is governed by Danish law, with disputes referred to [the ordinary courts / arbitration]. Signed: Supplier ____________ Customer ____________ Date ______

- **Vague scope.** A service description without a Statement of Work or a change control process is the main source of unpaid extra work and disputes.
- **No data processing agreement.** If the supplier touches personal data for the customer, the GDPR and the Danish Data Protection Act require a written data processing agreement; its absence is a compliance gap, not a detail.
- **Unlimited liability.** A supplier agreeing to uncapped liability, or a customer accepting a cap so low it offers no real protection, both carry hidden risk.
- **Automatic renewal with a long notice period.** Evergreen terms that renew unless cancelled months in advance can trap a party in a deal it wanted to exit. Make the renewal and notice terms explicit. ## Keeping the agreement and the work in step A service agreement moves as the relationship runs: scope grows, fees are renegotiated, service levels are added, and the data processing agreement may need updating. For a business running many contracts, the challenge is keeping each one current and knowing which terms are in force. Drafting from a sound template, checking a clause that leaves you over exposed, editing a term in plain language, and holding every version with its date is the kind of work an AI contract workspace can keep in one place, tuned to how your company contracts. [Adira](https://adiralaw.com) is built around that single workspace idea. Its depth today is in Indian law, with other jurisdictions including Denmark on the roadmap, so for a Danish deal the template above and local advice remain your guide. The point worth borrowing is that a contract is easier to trust when drafting, review and version history live together.