Since July of last year, paying more than 1,000 euros in cash in a transaction involving a professional is punishable by a fine. Even if it is to pay a restaurant bill, some shoes or a repair in the workshop.
According to Law 11/2021, which introduces changes to anti-fraud regulations, the fine for exceeding this limit of 1,000 cash payments is 25% of the amount paid. In addition, as explained by the Bank of Spain, those responsible for paying it will be both the one who makes the transfer and the one who receives it, and the fine will be shared jointly.
The law provides for the following sentence reductions:
-Reduction of 65% derived from the minutes with agreement.
-40% discount for early payment.
-30% discount for conformity.
In addition, if one of the payment participants reports the operation to the Tax Agency in the following three months, he would be exempt from paying the fine.
Also for payments between professionals
The regulation entered into force almost a year ago with the aim of reducing tax fraud and does not only affect payments from an individual to a professional, but also payments between professionals.
That is, if a self-employed person cannot pay another or a company more than 1,000 euros in cash in exchange for a service or product. This limit also applies to transfers with bearer checks, as well as other means that do not identify the people who pay and collect, since they are considered cash.
There is only one exception, according to the anti-tax fraud law. If the payment is made by a non-professional person with tax domicile abroad, the cash payment may be for a maximum of 10,000 euros. In other words, the law is more lax with tourists who pay in cash.
It is important to point out that the limit established by the Tax Agency corresponds to the payment of a complete product or service, not for each transaction, so if we divide the fee into four payments of 500 euros, we will be breaking the law and we may be fined.
The Government lowered the previous limit of 2,500 euros almost a year ago to avoid cases of fraud in which professionals, especially freelancers, charge for a service or product without issuing invoices.
However, the European Central Bank recently stated that the lowering of the cap is disproportionate, since it significantly reduces the ability of professionals to charge for their work and limits the freedom of consumers to choose how to pay.
Facebook Comments
Disqus