New Anti Tax Fraud Laws 2021

The National Tax Office (AEAT) has published a document (of biblical proportions!) regarding the main tax changes introduced

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.

Cash Payments

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.

About Sabrina L. Williams

Although I was born in the UK, I moved to the Canary Islands, Spain at a young age and I haven't looked back. The Canaries is a fantastic place to live, I mean you can do all types of outdoor activities practically all year round because of the great weather. Horses are my poison but the islands are also a superb spot for water sports so they do attract a lot of attention from people around the world. Anyway, enough about that. Back in 2011, I made one of the biggest, scariest yet best decisions I'd ever made and set-up my own business in the middle of a recession. I love what I do as no two days are the same, plus Spanish law keeps me on my toes as it is constantly changing (often without warning!) so there is always something new to learn. As I've branched out in the world of Administrative Consultancy, I decided to create a blog to discuss topics of interest to others in my industry and my clients, share tips and experiences, to see what new ideas people have for improving their businesses and the like so I hope you'll find the time to join me on this venture...

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