Pay digitally as a business to avoid being liable for fraud

When you buy goods or services for DKK 8,000 including VAT or more and pay cash, you must send us a message about this cash transaction via E-tax for businesses.

Also applies to payments that are part digital and part cash

The same applies both if you pay the full amount or part of the amount in cash.

If you pay part of the amount in cash, you must inform us of the part of the purchase that was paid in cash.

The deadline for declaring this is 1 July when you file your VAT return.

If you do not inform us about it, your business cannot claim a deduction for the part of the amount that was paid in cash. In addition, you run the risk of your business having to pay VAT on the cash amount if your supplier did not charge VAT.

How to send us a message about a cash transaction

You need to sign up for sending and receiving emails to send us a message about cash transactions.

1. Log on to E-tax for businesses
2. Select ‘Kontakt’ (Contact)
3. Select ‘Skriv’ (Write)
4. Choose one of the subjects:
   • ‘Moms, lønsum og punktafgifter’ (VAT, payroll tax and excise duties) and then select ‘Moms’ (VAT)
   • ‘Selvstændige (fx start og luk virksomhed)’ (Self-employed (for example starting and closing a business))
   • ‘Selskaber, fonde og foreninger’ (Companies, funds and associations)
5. Select ‘Indberet kontanthandel’ (Declare cash transaction)
6. Write your message and press ‘Send’

If you receive a regular service (such as phone, cleaning, rent, security guard, accounting services or if you have a maintenance agreement) where each invoice is for less than DKK 8,000, you should also pay these invoices digitally or send us a message via E-tax for businesses if the invoices from one supplier are at least DKK 8,000 including VAT over a year.

Example:

If you have cleaning services for DKK 1,000 a month, this corresponds to DKK 12,000 a year. Therefore, you should pay digitally (for example by credit card, online banking or in your bank). That way, you will ensure that you are entitled to a deduction, and you will not have to pay if your supplier commits VAT fraud.

You can make a digital payment in one of the following ways:

• Payment from account to account.
• Other payment to the receiver’s account (such as by payment card), which ensures a clear, digital identification of the payer and payment receiver.
• Payment by giro transfer form in a bank.
• Payment in full by barter (exchange of goods etc. without using money), set-off or full payment of an outstanding balance via current accounts. If payment is not made in full, it is considered a cash payment.

If you do not pay the full amount straight away, but a remaining amount is left to be paid by barter or set-off, or the balance is to be paid via a current account, this will be considered a cash payment. You must report such payments in E-tax for businesses within two weeks of the payment in order to be entitled to a deduction and avoid being liable for any fraud committed by others.

Examples:

Example 1:

The total payment for goods or services is DKK 15,000, of which DKK 6,000 is paid and DKK 9,000 is bartered, set-off or the balance is paid via a current account.

• Digital payment or reporting is not a requirement, as the DKK 6,000 is under the DKK 8,000 limit.

Example 2:

The total payment for goods or services is DKK 15,000, of which DKK 11,000 is paid and DKK 4,000 is bartered, set-off or the balance is paid via a current account.

• Digital payment or reporting is required for the DKK 11,000 that is paid in connection with the barter, set-off or the balance that is paid via a current account.
• Digital payment or reporting is not required for the DKK 4,000.

If you have claimed a deduction for an expense of at least DKK 8,000 including VAT, which you paid for in cash, but did not report within the deadline, you must do the following:

• If the payment took place this year, you must adjust the amount and not claim the deduction.
• If the payment was made after the end of the income year, you must enter the deducted amount as an income in the income year when the payment was made.

If a non-Danish business carries out work for you, you must ask for documentation that the business is included in the Register of Foreign Service Providers (RUT).

If the business does not provide this documentation, you should inform the Danish Working Environment Authority (Arbejdstilsynet) within three days of the work starting. Otherwise, you risk a fine of DKK 10,000.

You can look up businesses in the RUT register yourself:

Look up a business in the RUT register (www.virk.dk)

Contact the Working Environment Authority (www.amid.dk)