Cash transactions include payment with banknotes and coins that are in circulation as a means of payment, other payment methods other than direct transfers to a transaction account, payment with a payment or credit card, check and other similar payment methods. Invoices relating to cash transactions are invoices issued for the sale of goods and services that are partially or fully paid for with cash.
Cash transactions and the use of a bound account book
In accordance with Article 31 a of the Tax Procedure Act (ZDavP-2)[1] every taxpayer must (regardless of whether he is for VAT or not), who keeps business books and records on the basis of tax and other regulations and does not use a suitable computer program or electronic device for cash transactions, issue an invoice from a bound invoice book.
A bound book of invoices must also be used for cash transactions by any taxpayer who otherwise uses a computer program or electronic device for issuing invoices, but which does not allow him to issue invoices due to a malfunction or power outage.
In accordance with the fifth paragraph of Article 31 of ZDavP-2, data from the records of issued bound account books and data from the records of certified bound account books must be kept for 10 years.
If invoices are not issued and kept in accordance with the rules, the fine amounts to between EUR 3,000 and EUR 50,000 for the offense of a self-employed individual and EUR 4,000 to EUR 75,000 (EUR 10,000 to EUR 125,000 in the case of a medium-sized or large business) for legal entity (Article 398.b ZDavp-2).
Restrictions on cash transactions
- Restriction of cash transactions between companies
Pursuant to ZDavP-2, legal and other entities, sole proprietors, individuals who are self-employed, administrative and other state bodies, bodies of self-governing local communities and holders of public authority must transfer payments for delivered goods and services and other payments to recipients to their transaction accounts. It is not necessary to transfer payments to transaction accounts when the payments are in smaller amounts or if a different record of these payments is provided (rules are determined by the minister responsible for finance).
In accordance with the Rules on the Implementation of the Act on Tax Procedure[2], a natural person performing activities is not obliged to transfer payment for goods supplied and services rendered to transaction account of a legal entity or natural person performing an activity, if the individual payment does not exceed EUR 420. Likewise, the legal entity is not obliged to transfer the payment for the delivered goods and services that it pays to the transaction account of the legal or natural person performing the activity, if the individual payment does not exceed EUR 420.
From the point of view of the implementation of the Rules on the Implementation of the Act on Tax Procedure, payment with payment and credit cards does not mean cash transactions, since the traceability of the cash flow is ensured when paying with them. Thus, a limit of EUR 420 applies to cash payments in the form of banknotes and coins[3].
Restriction of cash transactions with natural persons
The Law on the Prevention of Money Laundering and Financing of Terrorism (ZPPDFT-1)[4] prescribes restrictions on cash operations in Article 67. According to this law, persons who are engaged in the activity of selling goods or providing services in the Republic of Slovenia may not receive payment in cash from a customer or a third party for the sale of individual goods or the provision of an individual service, if this exceeds the value of EUR 5,000.
The restriction also applies if the payment is made in several interconnected cash transactions, which together exceed the value of EUR 5,000. When the amount exceeds EUR 5,000, persons engaged in the activity of selling goods or providing services accept payment from the customer or a third party to their transaction account.
A legal entity is fined between EUR 12,000 and EUR 120,000 if it accepts a payment in cash that exceeds EUR 5,000 from a customer when selling individual goods or providing a service.
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[1] Tax Procedure Act. Official Gazette RS no. 13/2011 official consolidated text, 32/12, 94/12, 101/13 – ZDavNepr, 111/13, 25/14 – ZFU, 40/14 – ZIN-B, 90/14, 91/15 and 63/16
[2] Regulations on the Implementation of the Tax Procedure Act. Official Gazette of the Republic of Slovenia no. 46/07, 102/07, 28/09, 101/11, 24/12, 32/12 – ZDavP-2E, 19/13, 45/14, 97/14, 39/15< /a>, 40/16, 85/16 and 30/17
[3] Financial Administration of the Republic of Slovenia (April 2015). Act on tax procedure: Tax payer – frequently asked questions and answers. Ljubljana: Ministry of Finance
[4] Law on Prevention of Money Laundering and Financing of Terrorism. Official Gazette RS no. 68/16.