Cash limit from 1 July to 2 thousand euros, high penalties

Let’s get ready to say goodbye to the 3 thousand euro ceiling for cash payments, a ceiling that Renzi had set in 2016 (raising it from the 1000 euros wanted by Monti in 2011). The new threshold above which you cannot go of 2 thousand euros (which will drop to a thousand on January 1, 2022). Penalty a very salty sanction that can go up to 50 thousand euros per operation.

Fight against tax evasion

The new limit for cash payments has nothing to do with the many government interventions in these times of emergency from Coronavirus. The instrument had already been established by decree no. 124/2019, connected to the Budget Law, with the aim of being able to fight tax evasion more effectively. Undoubtedly, however, the lockdown and the consequent forced closure of many stores and activities, has made a nice contribution to the traceability of traceable payments thanks to online sales.

Limits also for donations and loans between family members

Specifically, the ceiling means that up to 1,999 euros can give cash to another person or company. From 2,000 euros upwards, however, a traceable tool, such as bank transfer, credit card, etc., is required to transfer money from one person to another. The limit affects both who receives the money and who makes the payment. And it also affects donations and loans, even if made between family members. Do not worry, however, for the payments and withdrawals made to your current account, because as it is not a transfer of money between different subjects, it has no limits and does not incur penalties, and for payments in installments in cash such as, for example, dental care.

The penalties

Penalties for exceeding the 2020 cash payment threshold
Up to 250,000 the penalty ranges from a minimum of 2,000 to a maximum of 50,000 euros for the contracting parties; over 250,000 euros, the penalty ranges from 15,000 to 250,000 euros. For the professionals obliged to report in both cases the penalty ranges from 3,000 to 15.00 euros.

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