The Official State Gazette (BOE) of July 10, 2021, published Law 11/2021, of July 9 , on measures for the prevention and fight against tax fraud . Among the many new features introduced by this law, we find that the limit on cash payments between businesses is further restricted, reduced from 2.500 to 1.000 euros.
This limitation on cash payments to 1.000 euros is already in effect , from the day after its publication in the BOE (Official State Gazette), so from July 11th anyone who exceeds this amount by paying more than this sum, or accepts payments above this amount, faces significant penalties
Therefore, with the approval of Law 11/2021, point 1 of section One regarding the scope of application is worded as follows:
“Operations in which any of the intervening parties act as an entrepreneur or professional, with an amount equal to or greater than 1.000 euros or its equivalent in foreign currency, cannot be paid in cash.
However, the aforementioned amount will be 10.000 euros or its equivalent in foreign currency when the payer is a natural person who justifies that he does not have his tax domicile in Spain and does not act as an entrepreneur or professional.
It will apply to all payments made from the date the rule comes into force, even if they refer to transactions agreed before the establishment of the limitation , i.e., from July 11, 2021.
Penalties:
The infringement for payment in cash that exceeds the limit of 1.000 euros will be classified as serious and will consist of a fine of 25% of the amount that exceeds the limit of 1.000 euros.
A 50% reduction can be applied to this penalty if the payment is made in a voluntary period and no claim is made.
Cash payment complaints:
If one of the parties that intervenes in a commercial operation that exceeds the limit of 1.000 euros, denounces the other party, the party who reports will be exempt from liability, provided that the complaint is made within 3 months from the date of the payment.
