Do you receive cash payments in your business? You should be aware that there is a cash payment limit that has been modified and that failure to comply with it may result in a penalty.
Before the Anti-Fraud Law came into force on 11 July 2021, there was already a limit of 2,500 euros for cash payments. With the entry into force of the new anti-tax fraud law , the limit has been reduced to 1,000 euros. In the event that payment is made in a foreign currency, the equivalent of 1,000 euros in that currency will be considered.
YOU MAY BE INTERESTED! Following the publication of the measures to prevent and combat tax fraud included in Law 11/2021, of July 9, the Software Certification Regulation is now being published. It develops the specifications of the prohibition of dual-use billing programs introduced by the Anti-Fraud Law in July 2021.
LEGAL NEWS! Do you have any questions? Check out night clubs and bars email list the summary of the Software Certification Regulation prepared by the Sage Legal Team.
Who is affected by the cash payment restriction?
As we have seen above, the aim of the Anti-Fraud Law is to prevent tax fraud and, therefore, the black economy in Spain. For this reason, the limitation of cash payments of 1,000 euros affects when one of the parties pays or receives an amount of cash and is a businessman or professional.
As a result of the above, if you are self-employed or a business owner, you cannot charge more than 1,000 euros in cash for your activity. Similarly, if you are an individual who hires a professional or a company, you cannot pay an amount greater than 1,000 euros in cash.
The cash payment limit has been reduced to 1,000 euros.
Sage
In the case of payments between individuals who are not professionals or businessmen, the limit for cash payments will be 2,500 euros. On the other hand, the limit for cash payments is also reduced in the case of private individuals with tax domicile outside Spain. In this case, the limit will be 10,000 euros.
