The Danes are out at the round 16 stage after a 2-0 loss to the hosts.
Denmark were denied a goal by VAR after Crystal Palace defender Joachim Anderson's effort was chalked off for offside against teammate Thomas Delaney.
Then Anderson was judged to have handled the ball inside the Denmark area, leading to Kai Havertz to convert his penalty for Germany.
"I must congratulate Germany but the game was decided by two VAR decisions. I have the picture on my phone here. It is offside by one centimetre," said Hjulmand.
"And I am so tired of the ridiculous handball rule. We cannot make our defenders run with their hands behind their back. It's frustrating. This is not how football is supposed to be.
"I'm not against VAR but we have to be quicker and improve it. In my opinion, the decision should be as clear as the moon and not like we saw today."