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Law, tax and regulation

CVR number as an affiliate

Also called Danish CVR number, business registration as an affiliate in Denmark, VAT registration as an affiliate in Denmark, CVR-nummer.

Short answer

CVR number as an affiliate is about when affiliate income in Denmark requires a registered business. A CVR number is not required to earn commission, but becomes necessary when you must register for VAT – at VAT-liable turnover above DKK 50,000 within a calendar year.

Definition of CVR number as an affiliate.

A CVR number is a Danish business’s identification number in the Central Business Register (Det Centrale Virksomhedsregister). It is assigned on registration at virk.dk, and registering a sole proprietorship is free and has no capital requirement. The number is public together with the name and address – if the business is run from home, the private address therefore becomes searchable.

Tax liability does not depend on the CVR number. All affiliate income must be reported to the Danish Tax Agency (Skattestyrelsen) from the very first krone, even without a business. The question of registration is about something else: whether the activity is a business, and whether VAT must be accounted for.

The Danish Tax Agency distinguishes between hobby and business based on whether the activity is run systematically with a prospect of profit, whether its scale is of a certain size, and whether it is carried on regularly rather than occasionally. A blog that brings in a few hundred kroner a year is a hobby. A niche site that is published and optimised every month and brings in stable commission is a business – whatever its owner chooses to call it.

The difference has consequences. Hobby income is calculated as net profit and taxed as personal income without the labour market contribution, and a loss cannot be deducted from other income. A business gives access to deductions for operating costs and the option of the business tax scheme (virksomhedsordningen) – and the obligation to pay the labour market contribution (AM-bidrag).

VAT on affiliate commission

Affiliate commission is payment for a marketing service and is therefore subject to VAT. The threshold for VAT registration in Denmark is DKK 50,000 in VAT-liable turnover within a calendar year – that has been the rule since 1 January 2025; before then it was calculated over 12 months. The obligation arises when the threshold is exceeded.

If you are VAT-registered and receive commission from a Danish company, 25 % Danish VAT (moms) is added on top of the commission. If the commission comes from a network in another EU country, the reverse charge rules apply: as a starting point you invoice without Danish VAT, and the buyer accounts for the VAT in their own country. Special requirements apply to registering and reporting EU sales without VAT – clarify them before you send the first invoice.

What you need in place from day one

Commission statements from networks and programs are accounting records and must be booked. The Danish Bookkeeping Act (bogføringsloven) requires accounting records to be kept for 5 years from the end of the financial year they relate to. This also applies to statements that only exist as a page in a dashboard – download them while you have access.

A separate bank account is not a legal requirement for a sole proprietorship, but it saves work with every annual account. The rules are interpreted by the Danish Tax Agency, and if you are in doubt about your own situation, an accountant is cheaper than a retrospective adjustment.

How it goes wrong

  • 01

    The hobby label does not hold when income is stable

    The assessment is made by the Danish Tax Agency based on the nature of the activity, not by the person carrying it out. Stable monthly commission from a site that is continuously updated looks like a business – and is treated as a business, including retrospectively.

  • 02

    Foreign networks are overlooked

    Commission from a network in another EU country follows different VAT rules from Danish commission, with its own requirements for invoicing and reporting. It is often forgotten because the income feels too small to be a VAT question.

Frequently asked questions

Do I need a CVR number to be an affiliate in Denmark?

Not to get started. If the income is small and the activity occasional, it can be treated as hobby income and reported without a registered business. A CVR number becomes necessary when you must register for VAT, or when a network requires you to be able to invoice as a business.

When do I have to register for VAT as an affiliate in Denmark?

When your VAT-liable turnover exceeds DKK 50,000 within a calendar year – the obligation arises when the threshold is exceeded. If you receive commission from a network in another EU country, special rules on reverse charge and reporting apply, which you should clarify with the Danish Tax Agency (Skattestyrelsen).

Does it cost anything to get a CVR number?

No. Registering a sole proprietorship is free at virk.dk and requires no start-up capital. A private limited company (anpartsselskab, ApS), on the other hand, requires share capital of DKK 40,000 and has more formal requirements, which is rarely necessary for an affiliate business that is just starting out.

Do I have to add VAT to my affiliate commission?

If you are registered for Danish VAT and receive commission from a Danish company, 25 % VAT is added on top of the amount. If the recipient of your service is a business in another EU country, you invoice without VAT under the reverse charge rules, and the sale is reported as an EU sale without VAT. If you are not VAT-registered, no VAT is added.

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