The Government intends to limit cash payments to only 1,000 euros, dropping it from the present 2,500-euro ceiling.

This move is part of a series of tax measures that will be approved on Friday the 2nd of December and will take effect on the 1st of January next year. The Government hopes that these new measures will bring in an extra 1,000-million euros.

The use of a Royal Decree effectively bypasses the parliament; something that the Government is increasingly using now that it does not have a parliamentary majority.

Another measure is to force large companies to use a real-time, electronic control of their IVA, using the Suministro Inmediato de Información (SII) – this will affect some 62,000 tax payers.

This system means that companies have a maximum of four days to send in the details of their financial operations; i.e., sum of the sale, type of invoice, tax payer’s ID, etc.

The Government hopes that it will be able to notably reduce fiscal fraud by cross checking the submitted information.

Editorial comment: this article aims to be only informative, therefore readers should consult their tax consultants (gestorias) etc for more detailed and definitive information.

(News: Spain)