New threshold for cash circulation

From 1.01.2022 the limit will be lowered to € 1,000 with the consequent modification of the penalties. Instructions for professionals.

The new payment threshold was introduced with the publication in the Official Gazette of Law 157/2019. This limit applies to any type of payment, ie any transfer of money between natural or legal persons. The art. 1, c. 2, lett. m) Legislative Decree 231/2007 has provided for a certain period of time of 7 days within which a payment transaction can be considered a single one. In any case, it is up to the recipients of the anti-money laundering obligations to identify any unique elements to bring the operation back to an elusive intent. The goal is undoubtedly to reduce tax evasion, especially in the VAT sector. However, nothing changes regarding withdrawals and deposits in Bank, since it is not a question of transfers of money between different subjects but of movements involving a single person.
We remind you that the prohibition on the transfer of cash to another person, beyond the established limits, also refers to bearer securities in euros or in foreign currencies, including donations or disbursements in favor of relatives.
The limit to the circulation of cash is reinforced by art. 1, cc. 679 and 680, of the 2020 Budget Law, according to which from 1.01.2022 all deductions to be carried forward in 730 must be supported by a payment made with traceable tools as defined by art. 23, Legislative Decree 241/1997. The novelty does not extend to the purchase of medicines and medical devices and to healthcare services provided by public facilities or private facilities accredited to the National Health Service.

In the recent circular 7 / E / 2021 the Revenue Agency has provided clarifications on the subject. The taxpayer can demonstrate the use of traceable payment systems by annotation on the invoice, tax receipt or commercial document, made by the person who receives the sums. Therefore, no further documents will be required if the recipient of the sums (who issues the document) reports the specification regarding the method of payment. Alternatively, the use of traceable payment systems can be demonstrated through paper proof of the transaction, debit or credit card receipt, copy of postal order, Mav, payments with Pago PA or bank statement.
According to the Agency theaccount balance it constitutes an optional, residual and not additional proof, which the taxpayer can use to his own advantage if no other proof is available. For the right to deduction, in the opinion of the Agency, the charge can be considered borne by the taxpayer to whom the expense document is made out, not noting for this purpose the material executor of the payment, the latter aspect that “it concerns the internal relations between the parties”.

The new cash payment threshold must be respected not only by the payer but also by the recipient: both can be subject to sanctions when the limit of 999.99 euros is exceeded; the sanction applies both to those who transgress the rule on the use of cash, and to those who do not communicate the irregularity being obliged to do so. Violators can benefit from the oblation provided for by art. 16, Law 689/1981, albeit in different ways. THE professionalsin fact, if in the exercise of their functions they find that transactions involving the transfer of cash over the threshold are being carried out, they will be obliged to make a specific communication to the MEF, within 30 days from when they became aware of it.

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threshold cash circulation

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