Traditional cash registers are retiring and will be replaced by digital point-of-sale (POS) systems in 2024. Is your business ready for this digital transformation? And what rules must actually be followed? You’ll find the answers in this guide so you can stay compliant with the law.
But maybe we should start from the very beginning...
A Point Of Sale (POS) system is the central software system in a business, with integrations and connections to other business systems, such as accounting systems, webshop systems (CMS), loyalty systems, inventory systems, scheduling, payment terminals, and more.
The POS system manages your entire product catalog, which seamlessly integrates with your other systems, exchanging data so you can always stay on top of your business.
A standard POS system typically includes an iPad screen functioning as a digital cash register, a cash drawer, a receipt printer, and a payment terminal to accept card or mobile payments. Most businesses typically choose to accept Visa, MasterCard, MobilePay, and Apple Pay.
In December 2018, all parties in the Danish Parliament approved a proposal requiring 12,500 stores, restaurants, pizzerias, and other selected industries to invest in a digital cash register system by 2024. This decision was made due to irregularities in the accounting records of these industries, and with digital cash register systems, it becomes easier to manage accounts as all activities are stored and automated, allowing, for example, a cash report to be sent directly to the accounting software. Additionally, data is stored and logged on request, which helps minimize irregularities.
Note: It is important to note that the Ministry of Taxation has the authority to require businesses to implement a digital POS system before 2024 if they find irregularities, errors, etc., in VAT and tax payments.
As a POS provider, we have received various responses to this change, but the vast majority of businesses contact us with confusion about what they need to do and which legal requirements they actually need to comply with.
The Danish Parliament and the Tax Administration (SKAT) have decided to focus on businesses with annual revenues between DKK 50,000 and DKK 10 million in the following 4 industries:
If your business belongs to one of these industries, it is important to start looking for a good POS provider before 2024. However, it can be a jungle to navigate, so here are 5 good tips on how to choose the digital cash register system that best suits you and your business.
✅ Choose a solution tailored to your industry. For example, choose a solution that also offers a digital menu and special features to boost your sales.
✅ Choose a POS solution that has integrations with the business systems you use, such as accounting software, webshops, inventory systems, etc.
✅ Choose a provider that offers local support and speaks Danish. It’s not ideal to work with a provider that only has English-speaking support from another country.
✅ If you need the ability to accept payments on the go, make sure you choose a solution that allows this. This means you should have a setup where you can use a wireless terminal and your phone for quick sales when you’re out and about.
The digital cash register solution from Shopbox supports the new regulations. You can create a free account and try the system for 14 days with no obligation.