Cash payment limit

What it means

The cash payment limit is a statutory rule under which a payment above a set threshold may not be made in cash but only by bank transfer. Its aim is to make tax evasion and money laundering harder and to ensure that larger payments leave a trail.

The law distinguishes who is paying: where at least one party is a business, the limit is lower; between individuals outside business it is higher. The limit applies to the value of the whole payment, not just the part paid in cash.

Related payments are added together. If one contract is paid in several smaller cash amounts, for example to get round the limit, the total is what counts. The law also limits the number of coins accepted in one payment.

How it works in practice

When processing the cash book we watch larger cash payments and receipts and, for payments close to the limit, warn the client before the next payment. For advances and instalments under one contract we count the total, not the individual cash vouchers.

We advise clients to set an internal threshold, lower than the statutory limit, above which nothing is paid in cash at all. For goods usually sold for cash, such as cars or machines, we set up payment to a bank account or by instant payment, which is as fast as cash.

The limit also applies to wage payments, loans to shareholders and contributions to the company. If a client needs to put cash in, we recommend depositing it into the company’s bank account, which leaves a clear record and raises no questions in an audit.

What to watch out for

Both payer and payee can be fined, and the maximum fine for companies is much higher than for individuals. Checks are carried out by tax offices, which often find breaches during an ordinary tax audit.

The EU is introducing a uniform upper limit on cash payments as part of its new anti-money-laundering rules, while stricter national limits remain in place. Nothing will therefore be relaxed in Slovakia, and companies should expect tightening rather than easing. Registration in eKasa does not affect this obligation.