Belastingdienst Not Obligated to Accept Cash Payments for Taxes

By Netvora Tech News

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The Dutch Tax Authority (Belastingdienst) is not required to accept cash payments for taxes, according to a statement from State Secretary Van Oostenbruggen of Finance. This clarification comes in response to a request from the Permanent Committee on Finance regarding a petition from a hairdresser. The hairdresser had been allowed to pay her turnover tax, income tax, and health insurance premiums in cash from 2022 to 2024, despite the initial refusal from the Tax Authority. After a complaints procedure, the tax collector decided to accept the cash payments out of courtesy. However, the Tax Authority recently informed the hairdresser that she can no longer pay her taxes in cash starting from this year. The hairdresser has filed a new complaint with the Tax Authority and has also turned to the Permanent Committee. The hairdresser argues that the Minister of Finance advocates for cash payments in the Netherlands. "It is indeed of great importance that cash is widely accepted at the checkout counter. Many people rely on cash payments because they struggle with electronic payment methods. Additionally, there is a group of people who prefer to pay in cash or want the option to do so," the State Secretary replied, adding that cash is the primary fallback option in case of electronic payment system failures. No Acceptance Obligation However, the Tax Authority is not obligated to accept cash payments, according to Van Oostenbruggen. The State Secretary explained that the Tax Authority often deals with large amounts of tax payments, which must be deposited into a cash machine at a local supermarket and then transferred to the Tax Authority's account. The Tax Authority pays transaction costs for these cash deposits, which are normally borne by the taxpayer. Moreover, the State Secretary warned that cash payments could lead to additional assessments due to the administrative processing time within the Tax Authority. Banking Regulations The hairdresser claims that she cannot deposit cash online. Van Oostenbruggen mentioned that banks are currently free to offer or not offer cash deposit services to their customers. A proposed bill, the Electronic Payment Traffic Act, would require large and medium-sized banks to offer cash deposit services to their customers. This bill would also regulate the maximum fees that banks can charge for these services. The hairdresser also mentioned that she can pay her municipal taxes in cash. However, the State Secretary noted that the local government prefers giraal payments (electronic payments). "The tax collector has accepted cash payments from the petitioner in the past as an exception. However, the Tax Authority has repeatedly indicated that it is no longer possible to accept these cash payments. If the taxpayer relies on this acceptance, the Tax Authority has timely terminated the agreement," Van Oostenbruggen summarized the situation. The State Secretary sees no reason to ask the Tax Authority to continue accepting the hairdresser's cash payments.