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
inforevision
January 3rd
Approx. 3 minutes

New Year's greetings 2025

New Year's greetings 2025...

2025 - a year with many unknowns. A new year is already well underway. In Denmark, we enter 2025 with an economy in tri...

inforevision
New
Tax, VAT and duties
December 11th.
Approx. 4 minutes

6 tax tips for the New Year

6 tax tips for the New Year...

Stocks, pensions, gifts and charity. There may be deductions to be made and money to be saved if you give your personal finances a ...

Tax, VAT and duties
New
Tax, VAT and duties
December 11th.
Approx. 3 minutes

Guide: Reporting employee shares to the Danish Tax Agency

Guide: Reporting employee shares to the ...

By January 20, 2025 at the latest, you must report your employees' share salary to eKapital. We have put together a guide to help you...

Tax, VAT and duties
New
Tax, VAT and duties
December 11th.
Approx. 2 minutes

The green craftsman deduction is back

The green craftsman deduction is back...

From January 1, 2025, you can get a deduction for so-called green renovations to your home or holiday home. There are also improvements...

Tax, VAT and duties
New
Pension
Tax, VAT and duties
December 10th.
Approx. 3 minutes

Remember your pension before the end of the year

Remember your pension before the end of the year...

You get an extra deduction for deposits of up to DKK 80,600. This applies to both private and employer schemes. In addition, you can...

Pension
Tax, VAT and duties
New
inforevision
December 10th.
Approx. 1 minute

Two new state authorized public accountants in inforevision

Two new state authorized public accountants in inforevi...

Charlotte Preisler Friedlænder and Mette Schüsler have completed one of the country's most demanding training programs and can now call themselves...

inforevision
New
Mileage deduction
December 10th.
Approx. 1 minute

Transportation allowance and mileage reimbursement in 2025

Travel deductions and mileage allowance in ...

The Tax Council has set the new rates for deductions for transportation between home and work and for reimbursement of expenses...

Mileage deduction

Read more current news here