The tax office can impose fines of up to 150,000 euros if it detects that the amount of money in a transfer exceeds the established limits.
Mobile payments have become very popular in this generation. More than 24 million users worldwide use Bizum to make small payments, such as settling debts or paying at small shops.
However, when carrying out these operations, there is one detail that not everyone takes into account, and that is that the Tax Agency can impose fines of thousands of euros if it detects that the amount of money in a transfer exceeds the established limits.
Therefore, in view of the possible misuse of this service, the platform limits the amount of money that can be transferred by this method, but the Tax Office also keeps a close eye on those that have already been executed.
What is the limit on the amount of money sent by Bizum that cannot be declared to the tax authorities?
According to Bizum regulations, the maximum amount of money that can be sent via Bizum is €1000. The payment system also limits the number of transactions, so that no more than 60 money transfers can be made per month. If this limit is exceeded, the platform warns that it is not possible to carry out the transaction.
On the other hand, the limit set by the Treasury to be obliged to declare is 10,000 euros or more. If a transaction with this amount is registered, the bank is obliged to notify the Tax Agency and the user must include this bank transaction in the tax return.
How much can the tax authorities fine me for sending money via Bizum?
The General Tax Law states that banks are obliged to provide the Tax Administration with “all data, reports, background information and supporting documents with tax implications related to the fulfilment of their own tax obligations or deduced from their economic, professional or financial relations with other persons”.
As a corollary, money transfers exceeding 10,000 euros must be declared. Otherwise, the tax authorities will apply a heavy fine of between 600 euros and up to 50% of the amount transferred and not declared.
If the origin of the money is not justified, minor fines of up to 60,000 euros and, in the case of serious offences, more than 150,000 euros may also be applied.
For more information contact Global Consulting