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Do I have to pay VAT if I earn under 50,000 kr per year?

Person doing accounting at desk

Under 50,000 kr annual turnover you do not have to pay VAT, but still need to have a CVR number and must not charge VAT.

You do not have to pay VAT if your annual turnover is under 50,000 kr. This is the so-called VAT threshold for small businesses in Denmark.

Even though you do not have to pay VAT, you still need to register your business with SKAT and get a CVR number. You must not charge VAT on your services when you are below the threshold, and you cannot deduct VAT on your purchases.

Note that the threshold applies to turnover, not profit. If you exceed 50,000 kr during the year, you must register for VAT from the moment you cross the threshold.

Related questions

Can I work as a therapist without a CVR number?

All practitioners must have a CVR number to work legally in Denmark, regardless of whether they run their own practice or work as freelancers.

Do I need a CVR number as a data controller?

Yes, all independent practitioners must have a CVR number to invoice patients and report to SKAT.

Do I need to register for VAT to offer services?

VAT registration is required for turnover exceeding 50,000 kr. annually, but voluntary registration is possible from the first krone.

What do I do if I am entitled to payroll tax?

You must register with SKAT and pay 8.1% of the wage sum or 4.12% of turnover quarterly for turnover over 80,000 kr. annually.