“Can I pay by card?” You’re sure to hear this question more and more often. Usually in combination with “Oh, but I don’t have any cash with me.” It’s a topic that is constantly on the rise and one that everyone in the industry should address, because there’s more to it than meets the eye.
Cash transactions are a thorn in the side of the tax authorities
Let’s not kid ourselves: Cash transactions are a constant thorn in the side of the tax authorities. That’s why there have been repeated efforts in the past, such as in Austria, to introduce a mandatory cash register. So far in vain.
The increasing popularity of cashless payment transactions is a perfect fit for the tax authorities. In addition, a new cash register law came into force on January 1, 2020, which brought with it the so-called TSE cash registers requiring registration. This leaves only the open store cash register as a possible loophole for, let’s say, creative sales structuring.
Proportion of cash transactions becomes an audit criterion
The catch with the cash business: from the tax authorities’ point of view, it is only interesting for those who want to make use of this creative scope (with a few exceptions). Accordingly, the priority list for possible tax audits is being rearranged according to the type of turnover:
- Share of cashless turnover in total turnover
- Share of TSE cash register sales in total sales
- Share of cash business in sales
If a company is above a certain threshold value in the last point, it automatically moves up in the review priority.
The consequences can be devastating
It should be noted here that a tax audit can shed light on the last 10 years. And if discrepancies are found, not only will turnover be added, but the burden of proof will also be reversed: you will then have to prove that your figures are correct.
This can be very expensive and destroy your life plans in the long term. I know of far more such fates in the industry than most of you would suspect. Those affected don’t go around telling people about it. They tend to keep quiet when others shout their “tax tips” at the top of their voices.
Entrepreneurs beware
However, the whole thing also has a few positive sides that we don’t want to hide here. Most e-cash and cash register systems today have a DATEV interface, which makes your bookkeeping much easier.
Some customers also use their credit card to pay for their purchases in installments. So you also automatically offer tattoos and jewelry in installments. These are customers that you would otherwise miss out on.
Yours,
