Freelancer and tax: contract requirements for tax matters in 2026

When you work as a freelancer in Denmark, you are responsible for handling your own tax affairs, and your contract plays a central role in how you and the tax authorities categorise your work. Many self-employed people underestimate what a freelancer contract should govern about tax, VAT and invoicing, and it can prove costly.

This guide reviews the most important tax requirements for freelancer contracts in 2026: what the agreement should state, which mistakes trigger a tax reclassification, and what you concretely need to have in order as a self-employed person.

Why do tax matters matter in freelancer contracts?

A freelancer contract is not just an agreement to deliver a service. It is also documentation, towards the tax authorities, that you are a self-employed business and not an employee in the legal sense.

If your contract looks too much like an employment agreement, you risk the tax authorities reclassifying your working relationship. That means the client suddenly becomes liable for withholding A-tax and labour-market contribution, and you can be left with a tax claim you did not count on.

Signs of a genuine self-employed activity (according to the tax authorities)

The tax authorities use an overall assessment. The following factors point towards you being self-employed:

• You have several clients and are not dependent on one source of income
• You own your own work tools and bear your own operating costs
• You carry an independent business risk (you can lose money on the assignment)
• You decide yourself how and when you carry out the work
• You invoice with VAT (if turnover exceeds DKK 50,000)

These circumstances should appear in your contract or be supported by it.

VAT liability: when, and what should the contract say?

If your total VAT-liable turnover exceeds DKK 50,000 within 12 months, you are liable for VAT. It is your duty to register for VAT and charge 25% VAT on your services.

What your contract should contain about VAT

• Price statement: state clearly whether prices are excluding or including VAT. B2B contracts normally state prices excluding VAT.
• Invoice requirements: the contract should specify that you invoice with the correct CVR number, VAT number and statutory invoice elements.
• Payment terms: state the payment deadline (typically 8 to 14 days net for B2B).
• VAT registration number: include your VAT number in the identification section of the contract.

The obligation to issue an invoice follows from section 52 a of the VAT Act. The detailed requirements for the invoice content are set out in the VAT Order (issued under section 52 a(9)). A correctly drawn-up invoice must contain:

1. An invoice number (sequential)
2. The invoice date (date of issue)
3. Your name, address and CVR/VAT number
4. The buyer's name and address
5. The nature and extent of the service
6. The delivery date (if different from the invoice date)
7. The VAT base and VAT rate
8. The VAT amount

VAT with international clients

If you supply services to VAT-registered clients in other EU countries, reverse charge applies as a starting point. Your contract should specify that the invoice is issued without Danish VAT and that the client accounts for the VAT in its own country. Remember to state both parties' VAT numbers and a note about reverse charge on the invoice.

B-tax and provisional tax: the contract's role

As a self-employed person you do not pay A-tax. Instead you pay B-tax via provisional tax instalments. Your contract does not have to mention B-tax directly, but it must support that you are self-employed, otherwise the tax authorities can require the client to pay A-tax and labour-market contribution on your fees.

Practical contract elements that support self-employed status

Self-determination over how the work is done: the contract should establish that you, as the supplier, independently decide how and when you carry out the work, within the agreed deadlines.

No exclusivity clause: avoid contracts that forbid you from working for others. An exclusivity clause resembles an employment relationship.

Own equipment and operating costs: state that you use your own equipment and bear your own operating costs.

No fixed working hours: avoid contract terms about meeting times, a fixed workplace at the client's premises or ongoing personal presence.

The business tax scheme and the contract's tax consequences

Many self-employed people use the business tax scheme (virksomhedsordningen, VSO) to optimise tax. VSO makes it possible to retain profit in the business against payment of a provisional business tax (currently 22%) and to get full deduction for business interest expenses in personal income.

Your freelancer contract has an indirect bearing on VSO, because the income must come from business activity. Contracts that resemble an employment relationship can jeopardise access to VSO.

The capital return scheme

If you do not want VSO, the capital return scheme (kapitalafkastordningen, KAO) can be an alternative. KAO is administratively simpler and still gives certain tax advantages. Your contracts have no direct implications here, but your overall business profile (several clients, own risk, etc.) must still support self-employed status.

Deductions and documentation requirements

As a freelancer you can deduct business expenses. Your contract can support the right of deduction by documenting which services you deliver and in what business context.

Typical deductible expenses for freelancers

• Software and subscriptions: work-related programs and services
• Workplace and home office: a separate office in the home (special rules apply)
• Professional development: courses and conferences related to your profession
• Accountant and lawyer costs: including legal advice on contracts
• Marketing: website, advertisements, business cards
• Insurance: business insurance, liability insurance

Keep all receipts and note the connection to the business. Under the Bookkeeping Act, accounting records must as a starting point be kept for 5 years after the end of the financial year they relate to.

Fee contracts: A-income disguised as B-income?

A particular pitfall is fee contracts, that is, agreements that use words like "fee" or "remuneration" but in practice work like salary agreements. This is seen, for example, in art, teaching and advisory work.

Fee income is in reality treated as salary-like income if:

• You only carry out the work for one payer
• You do not have an independent business
• You do not have a real business risk
• The work is carried out under the payer's instruction and supervision

If you have a genuine freelance business with a CVR number, VAT and several clients, your fees are income from self-employment (B-income), but the contract must support this.

Special matters: royalties and intellectual property

If you supply services that involve the transfer of intellectual property (software, texts, designs), your contract should specify:

• Who owns the rights? Are they transferred to the client or licensed?
• The remuneration for the transfer of rights: remuneration for ongoing use may have a different tax treatment than an ordinary fee
• The extent of the transfer: exclusive vs. non-exclusive rights

The tax treatment of royalty income can be complex. Consult an accountant for larger or ongoing rights agreements.

Practical checklist: tax requirements for your freelancer contract

Check these points before you sign or send a contract:

• The contract clearly identifies you as a self-employed business (not an employee)
• Your CVR number appears
• The price is stated excluding VAT with your VAT number
• Invoice requirements and payment terms are specified
• You retain autonomy over how the work is carried out
• There is no exclusivity clause
• Your own operating costs are not the client's responsibility
• The contract has a clear termination provision

FAQ: freelancer and tax

Must my freelancer contract mention tax?

No, the contract does not have to mention tax explicitly, but it must support your status as a self-employed business. The most important thing is that the terms (autonomy, own equipment, the duty to invoice) are clearly described.

What happens if the tax authorities reclassify my working relationship?

The client can be ordered to pay A-tax and labour-market contribution retrospectively. You can be left with residual tax and may have to correct incorrectly settled VAT. The consequences can be serious for both parties.

Can I invoice without VAT if my turnover is under DKK 50,000?

Yes, below the limit of DKK 50,000 in VAT-liable turnover within 12 months you are not required to register and can invoice without VAT. If the limit is exceeded, you must register and begin charging VAT.

Can I use the business tax scheme as a freelancer with only one client?

It is possible but risky. The tax authorities look at the whole picture, and one client alone points towards employee status. If you otherwise have a real business profile (own equipment, risk, marketing), VSO is still possible, but seek advice from an accountant.

What is the difference between B-income and B-tax?

B-income is income that is not A-income (that is, the payer does not withhold tax). B-tax is the tax you pay on your B-income via provisional instalments. As a self-employed person you typically have B-income and pay B-tax.

Get off to a good start with your freelancer contract

Having your tax affairs in order in your freelancer contract is crucial, not only to comply with the rules but to protect yourself against unexpected tax claims and client disputes.

A contract drawn up correctly from the start, with the right terms on identification, VAT, invoicing and autonomy, is your best documentation of a genuine self-employed status. You should always check the specific tax rates and thresholds on the tax authorities' website or with your accountant, as they can change from year to year.