A-skat vs. B-skat for Freelancers in Denmark (2026) (2026 Legal Guide) — Rules & Requirements
About this article
Sourced from Danish Acts of Parliament (love), executive orders (bekendtgørelser), and official government guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
Danish tax law splits income into A-income (an employer withholds tax at source under KSL §§ 43-49) and B-income (no withholding — the taxpayer pays it themselves under KSL § 50). Freelancers, sole traders, landlords and consultants are in the B-skat world and must manage their own withholding via the preliminary income assessment (forskudsopgørelse) and the tax bill (skattebillet) (the instalments):
- A-income: salary, pensions, SU, unemployment benefit — the payer withholds and remits the tax.
- B-income: business profit, rental income, interest, capital gains not covered elsewhere. The 8% AM-bidrag on self-employment profit is collected together with the B-skat via the tax bill.
- Instalment due dates (KSL § 58): 10 monthly payments — January to May and July to November, with no June or December. Due on the 20th of each month (rolled to the next banking day).
- CVR and VAT: register a business at virk.dk with MitID (free). Register for VAT if taxable sales exceed 50,000 kr. over 12 months — VAT Act § 48(1). The standard VAT rate is 25%. Register at least 8 days before the activity starts.
- Annual statement for the 2025 income year: available in E-skat from 23 March 2026. Extended correction deadline for ordinary taxpayers: 20 May 2026. The self-employed information form: 1 July. Cheaper interest on outstanding tax (day-to-day 3.7%) if paid by 1 July; a percentage surcharge of 5.7% after that (both non-deductible under SKR 10306/2025).
- Deductions (State Tax Act § 6 litra a): ordinary operating expenses, pension contributions and voluntary sickness-benefit insurance premiums (Tax Assessment Act § 13 A). The home-office deduction is rarely approved.
- Keeping records: 5 years from the end of the financial year under the Bookkeeping Act. Digital bookkeeping becomes mandatory for personally owned businesses with net turnover above 300,000 kr. in two consecutive years from 1 January 2026.
- Social security: ATP is voluntary for the self-employed (297 kr./month). Sickness-benefit insurance via Udbetaling Danmark covers from day 1 or day 3; the 2026 maximum benefit is 5,085 kr./week.
When does it apply?
- You are a freelancer, sole trader, consultant, landlord or self-employed person receiving Danish income without employer withholding.
- You are starting a business and need a CVR number, VAT registration or a bookkeeping set-up.
- You have exceeded the 50,000 kr. VAT threshold or are about to, and have not yet registered for VAT.
- You have missed a B-skat instalment, received a reminder or face an updated preliminary income assessment.
- You need to file the annual information form (the 1 July deadline) or correct your annual statement by 20 May 2026.
- You mix salary income (A-skat) and self-employment income (B-skat) and need to keep the preliminary income assessment accurate.
What to do if you are a freelancer or sole trader managing B-skat, VAT and the annual statement in Denmark
- Register the business at virk.dk with MitID (free). Choose the right activity code (NACE) — it affects sector obligations.
- Register for VAT at least 8 days before starting if taxable sales will exceed 50,000 kr. over 12 months. File electronically via Skattestyrelsen's TastSelv Erhverv.
- Update the preliminary income assessment when income changes significantly — go to skat.dk → TastSelv → Ret forskudsopgørelsen. Underestimating means a large outstanding tax bill plus interest at year-end; overestimating gives poor cash flow.
- Pay each B-skat instalment by the 20th of the instalment month. Set up a standing bank transfer to avoid the reminder fee (65 kr. per reminder) and § 7 interest per started month (non-deductible).
- File the information form by 1 July. Ordinary employees' annual statements can be corrected until 20 May 2026 for the 2025 income year. To get the day-to-day interest of 3.7% on outstanding tax, pay by 1 July 2026; after that a percentage surcharge of 5.7% applies.
- Keep 5 years of records under the Bookkeeping Act. From 1 January 2026, personally owned businesses above 300,000 kr. in turnover must use a registered digital bookkeeping system.
- Take out voluntary insurance: sickness-benefit insurance (day-1 or day-3 cover) via Udbetaling Danmark and voluntary ATP contributions.
What should you NOT do?
- Don't forget to update the preliminary income assessment when income rises or falls — it leads to a large outstanding tax bill or unnecessary overpayment.
- Don't default on a B-skat instalment. The reminder fee is 65 kr. per reminder, and the interest under the Collection Act § 7 is non-deductible and accrues per started calendar month.
- Don't exceed the 50,000 kr. VAT threshold without registering — Skattestyrelsen can reopen retroactively up to 6 years (10 years for low-tax countries) and demand the missing VAT plus interest and surcharges.
- Don't skip the information form. Skattestyrelsen sets a provisional assessment and imposes a fee of 800 kr. (Collection Act § 4(2)).
- Don't mix A-skat salary and B-skat profit without updating the preliminary income assessment — the combined top tax can trigger a large underpayment.
- Don't take a home-office deduction lightly — the room must be specially fitted out so it cannot function as living space, and must be your main place of work.
- Don't skip the move to digital bookkeeping when turnover exceeds 300,000 kr. in two consecutive years from 1 January 2026.
About Tax Rights in Denmark
Tax in Denmark is administered by Skattestyrelsen (the Danish Tax Agency). Most employees receive a pre-filled annual tax assessment (årsopgørelse) every year in March, with a correction deadline of 1 May. Income tax consists of state and municipal tax plus a labour-market contribution (AM-bidrag) of 8% — the top marginal tax rate is around 56% and rises further under the top-top tax from 2025. Employers withhold A-skat via your tax card. VAT (moms) is 25% on most goods and services under Skatteforvaltningsloven (the Tax Administration Act). You can complain about assessments to Skatteankestyrelsen (the Tax Appeals Agency) and appeal to Landsskatteretten (the National Tax Tribunal).
Common Questions
What is the difference between A-skat and B-skat in Denmark?
A-skat is withheld by your employer at source under KSL §§ 43-49 (salary, pensions, unemployment benefit). B-skat is everything else — business profit, rental income, interest, capital gains — where the taxpayer pays it themselves via the tax bill under KSL § 50. The 8% AM-bidrag applies to self-employment profit alongside the B-skat.
How often do I pay B-skat in Denmark?
In 10 monthly instalments — January to May and July to November, with no June or December (KSL § 58). Each instalment is due on the 20th of the month and is rolled to the next banking day. The instalment amount is derived from your preliminary income assessment, which you must update when the expected profit changes.
When do I have to register for VAT in Denmark?
When taxable sales exceed 50,000 kr. over any 12-month period — VAT Act § 48(1), unchanged for 2025/2026. Register at least 8 days before the taxable activity starts (§ 47(5)). The standard rate is 25%. Failure to register exposes you to reopening up to 6 years back (10 years for low-tax countries) plus interest and surcharges.
What deadlines apply to the Danish tax return in 2026?
The annual statement for the 2025 income year opens in E-skat from 23 March 2026. Ordinary employees can correct until 20 May 2026 (extended from 1 May). The self-employed filing the information form have until 1 July. For cheaper interest on outstanding tax (day-to-day 3.7%) you must pay by 1 July 2026 — after that the percentage surcharge is 5.7%. Both rates are non-deductible under SKR 10306/2025.
When does Danish digital bookkeeping become mandatory?
For companies using registered standard systems, since 1 July 2024; for specialised systems, since 1 January 2025; and for personally owned businesses with net turnover above 300,000 kr. in two consecutive years, from 1 January 2026 under the Bookkeeping Act (LOV 700/2022). Records must be kept for 5 years from the end of the financial year.
What is the a-skat vs. b-skat for freelancers and the self-employed right in Denmark?
Danish tax law splits income into A-income (an employer withholds tax at source under KSL §§ 43-49) and B-income (no withholding — the taxpayer pays it themselves under KSL § 50). Freelancers, sole traders, landlords and consultants are in the B-skat world and must manage their own withholding via the preliminary income assessment (forskudsopgørelse) and the tax bill (skattebillet) (the instalments):A-income: salary, pensions, SU, unemployment benefit — the payer withholds and remits the tax.B-income: business profit, rental income, interest, capital gains not covered elsewhere. The 8%...
When does it apply — a-skat vs. b-skat for freelancers and the self-employed?
You are a freelancer, sole trader, consultant, landlord or self-employed person receiving Danish income without employer withholding.You are starting a business and need a CVR number, VAT registration or a bookkeeping set-up.You have exceeded the 50,000 kr. VAT threshold or are about to, and have not yet registered for VAT.You have missed a B-skat instalment, received a reminder or face an updated preliminary income assessment.You need to file the annual information form (the 1 July deadline) or correct your annual statement by 20 May 2026.You mix salary income (A-skat) and self-employment...
What should I do if I work freelance in Denmark and need to register for VAT, pay B-skat instalments or file my annual statement?
Register the business at virk.dk with MitID (free). Choose the right activity code (NACE) — it affects sector obligations.Register for VAT at least 8 days before starting if taxable sales will exceed 50,000 kr. over 12 months. File electronically via Skattestyrelsen's TastSelv Erhverv.Update the preliminary income assessment when income changes significantly — go to skat.dk → TastSelv → Ret forskudsopgørelsen. Underestimating means a large outstanding tax bill plus interest at year-end; overestimating gives poor cash flow.Pay each B-skat instalment by the 20th of the instalment...
What should you NOT do — a-skat vs. b-skat for freelancers and the self-employed?
Don't forget to update the preliminary income assessment when income rises or falls — it leads to a large outstanding tax bill or unnecessary overpayment.Don't default on a B-skat instalment. The reminder fee is 65 kr. per reminder, and the interest under the Collection Act § 7 is non-deductible and accrues per started calendar month.Don't exceed the 50,000 kr. VAT threshold without registering — Skattestyrelsen can reopen retroactively up to 6 years (10 years for low-tax countries) and demand the missing VAT plus interest and surcharges.Don't skip the information form. Skattestyrelsen sets a...