The National Tax Office (AEAT) has published a document (of biblical proportions!) regarding the main tax changes introduced in Ley 11/2021, 9 de julio, preventative measure and the fight against tax fraud. This is in keeping with EU Directive 2016/1164 with the aim of preventing practices that directly impact the interior market.
Out of everything in this mammoth document, the one that probably effects most has to do with limitations on cash payments which generally speaking has been reduced from 2.500 euros to 1.000 euros. Payments that exceed 1.000 euros or the equivalent amount in foreign currency are not permitted if either of the intervening parties is a business owner or professional.
Limitations also apply for individuals whose registered tax address is located outside of Spanish territory; reduced from 15.000 euros to 10.000 euros.
These regulations also affect payments between employers and employees because pay slips equal to or more than 1.000 euros.
The penalty for non-compliance is 25% of the cash payment made that exceeds the above parameters, however a reduced rate of 50% is applicable if the fine is paid any time between the “proposal of a fine” by the AEAT but before the definitive notification is sent.
If one of the intervening parties of a commercial transaction reports the other for payment that exceeds the established limits, they will be found exempt of any responsibility as long as the matter is reported within three months of the payment.
The report must detail the nature of the transaction, the amount and the identity of the other party. If the report is made simultaneously by both parties, both will be found liable.
The other points in this law do not affect the majority of business owners but I will post updates on other areas that may be of importance.