Sparro
Guidance only: business form

Your business form: Freelance
without a CVR
number

You earn a little on the side and want to know when it becomes a business.

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Start capital
None
Liability
Not settledAsk an adviser about your liability
Registration
Not settledIt depends on whether the activity is a business
VAT limit
in turnover per calendar year
Valid as of October 15, 2026SourcesGuidance only. Not legal or tax advice. The rules can change, so always check the source and ask an accountant or lawyer before you decide.

Freelance without a CVR number

How it is built

You do not run a company. SKAT decides from the actual circumstances what your activity is.

  • No wall: you are not a company. Your liability is not examined here.

Guiding only. Not legal or tax advice.

You are the entity yourself. There is no company. SKAT decides from the actual circumstances what your activity is.
YourselfNo company form.
Your activityYou are the entity yourself. SKAT decides what the activity is.
Youno company form

Your start plan: Freelance without a CVR number

6 tasks. Every rule has its source, and the numbers carry a date.

0 of 6 tasks done

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  1. Work out what your activity is

    You do it

    SKAT sorts an activity as employee, fee earner (honorarmodtager), hobby or commercial business. The actual circumstances decide, not whether you send an invoice. SKAT assesses each activity on its own.

    Official sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceLegal Guide C.C.1.1.1: Independent commercial businessinfo.skat.dk · Checked Oct 15, 2026Opens in a new window

  2. Check whether you are in effect employed

    You do it

    According to SKAT, freelancers and consultants count as employees if they carry no financial risk. Sending an invoice instead of receiving a payslip does not make you self-employed.

    Official sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new window

  3. Agree and report your fee

    You do it

    A fee is as a rule paid out as B income. Then the customer withholds no tax or labour market contribution, and you pay the tax yourself in instalments. The labour market contribution is of the base. The customer reports the fee to SKAT every month, and you enter the expected fee in your preliminary tax assessment.

    Official sourceLegal Guide C.A.3.1.2: B incomeinfo.skat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceSKAT: B incomeskat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceLegal Guide A.B.1.2.2.2: Reporting of feesinfo.skat.dk · Checked Oct 15, 2026Opens in a new window

  4. Keep records of income and costs

    You do it

    Keep documentation of your income and of the costs you want to deduct. As a fee earner you can deduct documented costs, but they must not exceed the fee.

    Official sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new window

  5. Watch the VAT limit

    You do it

    You are exempt from VAT registration as long as your turnover (excluding VAT) does not exceed in a calendar year. If you pass the limit, the exemption ends from that point. Notification of VAT registration must be made at the latest before you start an activity that requires registration.

    Official sourceThe VAT act section 71 e, act no. 332/2024, retsinformation.dkwww.retsinformation.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceThe VAT act, retsinformation.dkwww.retsinformation.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new window

  6. Check whether the activity is a business

    You do it

    Whether an activity is a commercial business is an overall, concrete assessment under SKAT's criteria. If it is, it can be registered on virk.dk. When you must have a CVR number, this guide cannot decide for you: read SKAT's own pages, and ask SKAT or an adviser if you are in doubt.

    Official sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceSKAT: Register your businessskat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceExecutive Order no. 1243/2022 on CVR registration, retsinformation.dkwww.retsinformation.dk · Checked Oct 15, 2026Opens in a new window

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Read more about Freelance without a CVR number

The background to the plan. You do not need to read it to get started.

SKAT's criteria for a business

According to SKAT, an independent commercial business is run on your own account and at your own risk, is economic in nature, aims at a profit, runs reasonably regularly over a not entirely short period and is not of entirely subordinate scope. The line between business and hobby is an overall, concrete assessment where no single factor decides. VAT registration has no bearing on the assessment.

Official sourceLegal Guide C.C.1.1.1: Independent commercial businessinfo.skat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new window

Hobby

Profit from a hobby is taxed under section 4 of the State Tax Act. Deductions cannot exceed the income from the individual activity, and a loss cannot be deducted from other income. No labour market contribution is paid on hobby income. SKAT writes that an activity with financial risk must charge VAT if the activity is subject to VAT.

Official sourceLegal Guide C.C.1.1.2: Hobby activityinfo.skat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new window

VAT

Taxable persons are those who carry on independent economic activity. They are exempt from VAT registration when annual turnover (excluding VAT) does not exceed in a calendar year. If the limit is passed, the exemption ends from that point and cannot be used the year after. As a fee earner you generally do not register for VAT, but above the limit you must contact SKAT. Some fee services, for example lectures and literary activity, are VAT exempt.

Official sourceThe VAT act section 71 e, act no. 332/2024, retsinformation.dkwww.retsinformation.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new window

Bookkeeping

The Bookkeeping Act applies to businesses of every kind. Businesses must record all transactions accurately and as soon as possible. Accounting records are kept for from the end of the financial year they relate to. Whether the rules apply to your activity is something to ask an adviser.

Official sourceThe Bookkeeping Act, retsinformation.dkwww.retsinformation.dk · Checked Oct 15, 2026Opens in a new window

When the form no longer fits

Consider switching when your turnover (excluding VAT) passes in a calendar year, when the activity becomes a commercial business under SKAT's criteria, or when you carry financial risk, buy goods or hire help. Conversely, SKAT may treat you as an employee if you carry no financial risk.

Official sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceThe VAT act section 71 e, act no. 332/2024, retsinformation.dkwww.retsinformation.dk · Checked Oct 15, 2026Opens in a new window

Frequently asked questions

Do I need a CVR number?

This guide cannot decide that. Whether an activity is a commercial business is an overall, concrete assessment under SKAT's criteria. If you are in doubt, you can ask SKAT for a binding answer.

Official sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceLegal Guide C.C.1.1.1: Independent commercial businessinfo.skat.dk · Checked Oct 15, 2026Opens in a new window

Is a fee always B income?

No. As a rule a fee is paid out as B income, but it can be A income under section 43(2) of the Source Tax Act. Freelancers and consultants can also be employees.

Official sourceLegal Guide C.A.3.1.2: B incomeinfo.skat.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new window

When must I register for VAT?

The exemption from VAT registration applies as long as your turnover (excluding VAT) does not exceed in a calendar year. If you pass the limit, the exemption ends from that point.

Official sourceThe VAT act section 71 e, act no. 332/2024, retsinformation.dkwww.retsinformation.dk · Checked Oct 15, 2026Opens in a new windowOfficial sourceSKAT: Clarifying your business for tax purposesskat.dk · Checked Oct 15, 2026Opens in a new window

Other forms

Not the right one? See the plan for another form, or take the quiz.

Sources

Each source is shown with the date it was last read.

  1. retsinformation.dk (momsloven § 71 e, lov nr. 332/2024 og 1693/2024)Checked Oct 15, 2026
  2. retsinformation.dk (momsloven § 47)Checked Oct 15, 2026
  3. skat.dk (B-indkomst)Checked Oct 15, 2026
  4. Arbejdsmarkedsbidragsloven (retsinformation.dk)Checked Sep 28, 2026
  5. Bogføringsloven § 12 (retsinformation.dk)Checked Oct 15, 2026
  6. SKAT: Clarifying your business for tax purposesskat.dkChecked Oct 15, 2026
  7. Legal Guide C.C.1.1.1: Independent commercial businessinfo.skat.dkChecked Oct 15, 2026
  8. Legal Guide C.A.3.1.2: B incomeinfo.skat.dkChecked Oct 15, 2026
  9. Legal Guide A.B.1.2.2.2: Reporting of feesinfo.skat.dkChecked Oct 15, 2026
  10. The VAT act section 71 e, act no. 332/2024, retsinformation.dkwww.retsinformation.dkChecked Oct 15, 2026
  11. SKAT: Register your businessskat.dkChecked Oct 15, 2026
  12. Executive Order no. 1243/2022 on CVR registration, retsinformation.dkwww.retsinformation.dkChecked Oct 15, 2026
  13. Legal Guide C.C.1.1.2: Hobby activityinfo.skat.dkChecked Oct 15, 2026

The guide is general information, not legal or tax advice. Always check virk.dk and skat.dk, or ask an accountant or a lawyer.

Once the business exists, Sparro keeps track of the rest.

Bookkeeping, VAT and invoicing in one system. Company documents are in Preview.

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