In an era of technological demands, it's important for businesses to keep pace and ensure compliance with regulations. With the recent implementation of requirements for digital cash registers, it's crucial for businesses in the retail and service sectors with an annual turnover of less than 10 million DKK to understand the new rules and ensure a smooth transition.

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What is digital sales tracking?

Digital sales tracking, also known as a digital cash register system, is a way of electronically recording and storing sales information. This includes details like product descriptions, customer details, prices, staff information, and transaction records. Using digital tools for sales tracking helps businesses improve accuracy and streamline their sales processes. It also makes reporting, bookkeeping, and analyzing sales data easier, enabling businesses to better plan and grow

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Why is this being implemented ?

This implementation of digital cash registers is being introduced now in response to previously identified issues with inaccurate reporting and lack of sales registration in certain industries, especially within the retail and service sectors. Tax authorities have experienced challenges in the years leading up to this implementation with incorrect reporting of turnover and VAT from businesses in these sectors, resulting in significant loss of tax revenue.

This measure is part of a broader political effort aimed at strengthening the fight against irregularities in the economy and ensuring fairer taxation. By mandating the use of digital cash registers with specific features, it is hoped to increase transparency and reduce the possibility of inaccurate reporting and tax evasion.

Therefore, these new rules are being implemented now to address these issues and ensure more effective monitoring and control of businesses' economic activities.

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Key points :

Transition timeline: From January 1, 2024, digital cash registers are mandatory for businesses inthe following sectors:

• Restaurants and cafes.

• Pizzerias, kebabshops, grill bars, hot dog stands, ice cream Parlors, and candy stores.

• Grocery stores andkiosks.

• Bars and nightclubs.

Analysis of existing systems - Businesses should conduct a thorough review of their current sales registration systems to assess whether they meet the new requirements. This includes the ability to produce necessary documentation and export data to tax authorities.

Investing in new systems - If the current system does not meet the requirements, businesses should consider investing in a new digital cash register. It is important to choose a system that not only meets regulatory requirements but also fits the needs and workflows of the business.

Connection to Accounting Systems - Integrating the sales registration system with the accounting system can save time and reduce the risk of errors. Businesses should explore the possibility of such integration to optimize their processes.

Consultation with Experts - If there is uncertainty about whether the existing system meets the requirements or which new system to invest in, businesses should seek advice from accountants or auditors with experience in the field. At Summ, our experts are ready to help navigate the transition to digital cash registers and ensure compliance with regulations.

Future Compliance and Maintenance - After implementing the new system, it's important for businesses to continue monitoring and maintaining their sales registration systems to ensure ongoing compliance with regulations and efficient operation.

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The transition to digital cash registers may seem challenging, but with the right planning and support from experts, businesses can ensure a smooth transition and continued success in the industry. At Summ, we are dedicated to helping our clients navigate complex rules and ensure their financial health and compliance with regulations.

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