Cash is here to stay, despite the growing popularity of contactless and mobile payments. However, you cannot use cash always and everywhere. There are stores that refuse large and small amounts, or even none at all cash accept. And you can’t just spend large sums of money. What rules are there for paying these types of large amounts in cash?
What is the maximum amount of money you can pay in cash?
At the time of writing, there is no cap on cash spend. For example, if you purchase a second-hand car for 22,000 euros, then in theory you are allowed to do so cash to settle. Provided you happen to have 22,000 euros in cash in your pocket… But are you making a cash transaction of more than 10,000 euros? The seller must then conduct a customer investigation in accordance with the so-called Money Laundering and Terrorism Financing (Prevention) Act (Wwft).
Why is research necessary for major expenditure?
Cash payments of such high amounts are simply unusual, even if the money has been earned honestly. The seller must be able to establish that this money has a reliable origin. And therefore there is no money laundering. The government explains what exactly is involved in such a customer survey.
Also read: Patrick Wessels: ‘Why cash should not disappear’
After 2025: pay a maximum of 3,000 euros in cash?
The intention is that in the long term there will be a maximum amount for out-of-pocket expenses. That upper limit should be 3,000 euros. The then cabinet already submitted a bill with this measure in 2019. 5 years later, this bill is still under development. But the intention is that there will still be a ban on cash payments above 3,000 euros before March 31, 2025.
Are stores allowed to (partially) refuse cash payments?
Until this law is actually adopted, you can still pay large amounts in cash. In that case, the amount paid is often rounded to 5 cents, which does not happen with debit card payments. Our colleagues explain why this is the case Reporting point out. Please also note that stores have the freedom to only accept debit card payments, as you can read in this article. In addition, there are many shops, including supermarkets, that do not accept 1 and 2 euro cent coins or 100, 200 and 500 euro notes.
Also read: Can you still pay with 1 and 2 cent coins or 100 and 200 euro notes?
Do you have to pay taxes on cash?
And whether you spend it or not, it is wise to pay attention to the amount of cash you have. Because if it exceeds a certain amount, you have to pay tax on it. In 2024, the maximum tax-free amount is 653 euros. The Tax Authorities and Reporting point provide more explanation about this.
(Source: Archive, MAX Meldpunt, NOS, National Government, Tax Authorities. Photo: Shutterstock)
