New legal requirement to use digital cash registers from 1 January 2024

New legal requirement to use digital cash registers from 1 January 2024

In this blog, we discuss the new legal requirement to use digital cash registers from 1 January 2024 for some industries.

There are currently special rules on what a sales receipt from your cash register must contain when you sell to private customers from your business.

You can see the current rules here for what a sales receipt shall contain

From 1 January 2024, the rules will be extended to include a legal requirement for digital cash registers for some industries.

Digital cash registers are also called “POS” or “Point Of Sales”.

New legal requirement for digital cash registers from 1 January 2024

From 1 January 2024, there is a new legal requirement for some businesses to use digital cash registers for their sales registration.

These businesses must be able to submit information about their sales in a digital format called SAF-T format (Standard Audit File – Tax) to the Danish Tax Agency during or immediately after an inspection visit.

Which industries are covered by the new rules on digital cash registers?

The new rules on digital cash registers apply to businesses in the following industries when the revenue is below 10 million DKK per year:

Cafés
Bars
Discoteques
Restaurants
Pizzerias
Takeaway
Convenience stores

Integration between the cash register and accounting software

Many digital cash registers, or POS systems as they are also called, can work with popular accounting programs such as e-conomic, Dinero and Billy.

This means, in addition to complying with the new rules from 2024, you will often be able to import the day’s sales and payments automatically into your bookkeeping.

Efficiency and savings on accounting preparation

An investment in a new digital cash register (POS system) can, with the proper planning together with your accountant, result in efficiency gains and savings on the actual preparation of the accounts.

Suggestions for digital cash registers using e-conomic

If you use e-conomic for your accounting, we recommend looking at these POS systems:

ajour

FlexPOS

You need an OCES certificate

As a seller, you are required to obtain an OCES certificate (Public Certificates for Electronic Services).

This must be used to generate an XML file from your digital cash register system on demand, where the file must be digitally signed with an OCES certificate issued to you as a seller.

If data is stored with the supplier/third party and they send the electronic file on your behalf, the supplier will sign the transaction data with an OCES certificate they have acquired themselves.

Types of sales that should be registered in the digital cash register system

Sales paid with digital means of payment

All digital means of payment, such as payment cards, MobilePay, etc. must be linked to the digital cash register system in such a way that payment with digital means of payment is automatically registered in the digital cash register system.

Sales paid with cash payment

It is a legal requirement that sellers also accept cash as a form of payment, and therefore payments made in cash must also be registered in the digital cash register system.

Online sales via own website and online portals

Online sales, like sales made directly in the store, must be registered in the digital cash register system.

This applies to both sales via your own website and sales via online portals such as Just-Eat and others.

If the payment to the company is made with a digital payment method, it must automatically be registered in the digital cash register system.

If payment is made directly to the online portal, this must be registered as a payment method in the digital cash register system, similar to the registration of cash payment

Requirements that your digital cash register should comply with

The Danish Tax Agency has announced a list of requirements your digital cash register should comply with.

Here are 15 questions you should be able to answer “yes” to, in order to comply with the new rules:

1. Can your digital cash register log all actions in an electronic journal?

All actions must be logged in the digital cash registers electronic log.

Transaction data in the electronic log must be digitally signed with an OCES certificate that identifies the seller or the supplier of the digital cash register so that the integrity of the data in the electronic log can be verified for auditing purposes.

2. Does the electronic log contain the same information as on the receipt?


The electronic log must contain the information that must also appear on a simplified invoice or a cash receipt to the customer.

For each transaction, the electronic log must also contain:

Information about the sellers CVR number;
A sequential transaction number, which must be unique for the seller (per CVR number);
The time of the start and end of the purchase;
The payment method used;
The serial number of the digital cash register, which uniquely identifies the digital cash register system.

3. Does the digital cash register system have SAF-T as the default file format?


The digital cash register system must be able to produce a file directly from the electronic journal in SAF-T format.

The Danish Tax Agency has decided to use the OECD standard SAF-T (Standard Audit File – Tax) as the standard file format for reporting sales registration data to the Danish Tax Agency.

4. Can the file be transferred digitally or read out on commonly available electronic media?


The file from the electronic log must be readable on commonly available electronic media or otherwise be able to be transferred digitally to the Danish Tax Agency upon request.

5. Can the digital cash register system generate a Z-report?


The digital cash register system must be able to generate a report with the day’s turnover, which, after registration in the electronic journal, resets the sales counters etc.

6. Can the digital cash register system generate an X-report?


The digital cash register system must be able to generate a statement of the turnover from the last time a Z-report was generated, a so-called X-report.

7. Can the digital cash register system automatically record payment with digital means of payment?


Digital means of payment such as payment cards, mobile payments, etc. must be linked to the digital cash register system in such a way that payment with digital means of payment is automatically registered in the digital cash register system as part of the electronic log.

8. Can the digital cash register system log sales broken down by the type of payment method used?


The digital cash register system must be able to register total sales separately for each of the means of payment used, i.e. total sales for cash payment, card payment, mobile payment, etc.

9. Does the digital cash register system have a built-in date and clock?


The digital cash register system must have a built-in clock and date adjusted to Danish standard time.

All time adjustments in the digital cash register system must be registered in the electronic log.

10. Does the digital cash register system have a printer function?


A printer function must be connected, e.g. for printing simplified invoices or receipts if the seller cannot send the receipt digitally to a system that the customer has accepted in advance.

11. Can the digital cash register system print a receipt that distinguishes between positive and negative amounts?


It must be possible to print a receipt on demand that clearly distinguishes between positive and negative amounts.

The requirement is also considered fulfilled if the digital cash register system can send the receipt digitally to a system that the customer has accepted in advance.

12. Can the digital cash register system record sales separately for each seller?

Digital cash register systems intended to be used by multiple sellers must be able to record transactions and totals separately for each seller, including the size of the sale and the type of payment method.

13. Can the digital cash register system clearly mark on the receipt whether it is a “test receipt”?


Training of new employees in the use of the digital cash register system and similar registrations where no actual sales are made must be able to generate receipts that are clearly marked with e.g. “Test not valid” or “Training – not valid” so that they cannot be confused with regular receipts in any way.

14. Does the digital cash register system have a cash drawer for storing cash?


When a company receives cash, cf. section 81(1) of the Danish Payments Act, the point of sale system must be equipped with:

A cash drawer for storing cash;
A change drawer (inventory of coin and banknote types).

15. Is the digital cash register system without the ability to add, edit or delete in the electronic log?


The digital cash register system must not contain functions that make it possible to add, edit or delete information.

The digital cash register system must also not be able to connect or integrate with software or hardware that allows adding, editing or deleting information in the electronic log.

Note: If the electronic record is stored with a third party, the requirements in points 2-15 above must also be met.

What are the fines for non-compliance?

As a seller, it is your responsibility to acquire a digital cash register system that fulfils the new legal requirements.

You may be fined if, during an inspection after 1 January 2024, the Danish Tax Agency finds that the order to use a digital cash register system that meets the new requirements in the VAT Executive Order has not been complied with.

For each time we carry out an inspection of a company where the requirements for the digital casf register system are not met, the amount of the fine will increase by 10.000 DKK:

First visit: 10.000 DKK
Second visit: 20.000 DKK
Third visit: 30.000 DKK

The company may also be subject to daily fines that run until the requirements for the digital cash register system are met.

Daily fines are a minimum of 1.000 DKK per day.

Do you need advice or guidance on digital cash registers?

Please contact us if you need advice or guidance on choosing your digital cash register.

(This blog was updated last time on: 26.3.2024)

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