Get notified when there's news

Want to stay up-to-date? Sign up for our infoupdate. You'll be notified directly when we publish new content that's relevant to you.

I accept


Home page // Good advice: Pay digitally
When companies purchase goods or services for at least DKK 8,000 including VAT, the invoice must ...
May 25, 2021

Good advice: Pay digitally

If you pay a bill of more than DKK 8,000 in cash without informing the Tax Agency, you cannot deduct the expense. Instead, pay digitally. This also applies to private individuals when it comes to services.

When companies purchase goods or services for at least DKK 8,000 including VAT, the company must pay the invoice digitally or pay in cash and notify the Tax Agency via TastSelv Erhverv by the tax return deadline, which is typically July 1 the following year.

In the message to the Tax Agency, you must provide at least the following information:

  • The amount paid
  • Payment date
  • The company's CVR number (supplier's)
  • Company name (supplier's)
  • Invoice number
  • Billing date

Joint and several liability between buyer and supplier

If you pay in cash without notifying the Danish Tax Agency, your company cannot deduct the expense from your taxes. If the supplier also fails to settle their VAT, you may also risk having to pay VAT to the Tax Agency. This is because there is joint and several liability between supplier and buyer.

On January 1, 2019, the limit for the amount a company can pay in cash without incurring liability for the supplier's possible tax evasion was lowered from 10,000 to 8,000 DKK.

How to secure private individuals for cash payments

As a private individual, you must also pay bills of DKK 8,000 and above digitally - but only if you purchase services.  

If you have paid cash for services worth DKK 8,000 or more and the seller has not paid tax and VAT on the amount, the Danish Tax Agency can collect the VAT and tax from you. You can protect yourself against this in one of these three ways:

1. Pay digitally
2. Get a bill for the purchase and save it
3. Enter the cash purchase in TastSelv under contact. Enter the same information as mentioned above under businesses. Note that the deadline is no later than 14 days after you have paid.

The rules only apply to purchases of services from businesses. Pure purchases of goods are not covered.

More information 

If you have any questions or would like advice and guidance on your company's cash payments, you are welcome to contact inforevision'stax department.

Flemming Saabye
Head of the tax department
T: 39 53 50 38
fsa@inforevision.dk

Jannik Petersen
Tax advisor
T: 39 53 50 47
jpe@inforevision.dk

Newest Oldest Most read
New
Audit and accounting
March 18th
Approx. 1 minute

Lower capital requirements for ApS from 2025

Lower capital requirements for ApS from 2025...

The capital requirement for founding a private limited company (ApS) has been reduced from DKK 40,000 to DKK 20,000....

Audit and accounting
New
Audit and accounting
March 18th
Approx. 3 minutes

Capital owner loan news: What you need to know in 2025

Capital owner loan news: What you need to know in 20...

From 2025, it will be easier to borrow money from your own company. The previous, complicated rules on shareholder loans will now be...

Audit and accounting
New
Tax, VAT and duties
Properties and investments
March 18th
Approx. 1 minute

Rental of real estate: Remember separate VAT registration

Rental of real estate: Remember separate VAT.

Once your rental property is VAT registered, you need a separate VAT registration for each property...

Tax, VAT and duties
Properties and investments
New
Tax return and advance tax return
Tax, VAT and duties
March 16th
Approx. 2 minutes

Do you know about the special travel deduction?

Do you know about the special travel deduction?

In 2024, you can deduct DKK 143.50 per day for small necessities - even if you've had the expenses covered after the...

Tax return and advance tax return
Tax, VAT and duties
New
Tax, VAT and duties
March 16th
Approx. 1 minute

Forgotten deductions are not lost

Forgotten deductions are not lost...

If you have forgotten a deduction in a previous year, you have the option to change the information form...

Tax, VAT and duties
New
Tax, VAT and duties
February 18th
Approx. 2 minutes

Energy taxes 2025

Energy Taxes 2025.

From 2025, a new green tax reform will come into force, bringing significant changes to corporate energy taxes....

Tax, VAT and duties
New
Tax, VAT and duties
Generational change
February 18th
Approx. 5 minutes

Business succession: New, beneficial rules on the way

Generational change in business: New, advantageous...

A new bill that improves the conditions for generational succession of businesses, especially for family-owned businesses...

Tax, VAT and duties
Generational change

Read more current news here