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Law, tax and regulation

VAT on affiliate income

Also called VAT liability, VAT registration, moms.

Short answer

In Denmark, VAT on affiliate income must be paid once VAT-liable turnover exceeds DKK 50,000 within a calendar year. You must then register for VAT and add 25 % Danish VAT to commission from Danish networks and stores; services to businesses in other EU countries are as a rule invoiced without Danish VAT.

Definition of VAT on affiliate income.

Affiliate commission is payment for a marketing or intermediary service, and that type of service is subject to VAT in Denmark. The registration threshold is DKK 50,000 in VAT-liable turnover within a calendar year – the rule has applied since 1 January 2025; before that the threshold was measured over 12 months. The obligation arises when the threshold is exceeded, and below it you can register voluntarily. Other countries have their own thresholds and rules – this entry describes the Danish ones.

Where the VAT is due depends on who you sell to. To a Danish network or a Danish store, a VAT-registered affiliate adds 25 % Danish VAT. To a business in another EU country, the invoice is as a rule issued without Danish VAT under the reverse charge mechanism, so the buyer accounts for the VAT in their own country. VAT registration, incidentally, has no bearing on whether the activity counts as a hobby or a business for income tax purposes.

How it goes wrong

  • 01

    The threshold is counted on turnover, not profit

    It is the total VAT-liable turnover that counts towards the DKK 50,000 – not what is left once expenses have been deducted.

At Affilyflow

VAT on affiliate income in practice

If you are Danish and VAT-registered, Affilyflow adds 25 % VAT on top of the payout once your VAT number has been confirmed in the EU VAT register VIES. Foreign EU businesses receive the payout without VAT under the reverse charge rules.

Frequently asked questions

Do I have to pay VAT on affiliate income in Denmark?

Yes, once your VAT-liable turnover exceeds DKK 50,000 within a calendar year – you must then register for VAT and add 25 % VAT to commission from Danish networks and stores. Below the threshold you can leave it or register voluntarily.

Is the DKK 50,000 threshold per calendar year?

Yes. Since 1 January 2025 the threshold has been measured within a calendar year – before that it was measured over 12 months, and older guidance still mentions the old rule. The obligation to register arises when the threshold is exceeded.

Is there VAT on commission from a foreign affiliate network?

As a rule not Danish VAT when the buyer is a business in another EU country: the invoice is sent without VAT under the reverse charge mechanism, and the buyer accounts for the VAT. Special requirements apply to the invoice and reporting, so clarify your situation with the Danish Tax Agency (Skattestyrelsen) or an accountant.

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