The limitation, approved in the law on prevention and fight against tax fraud, affects the collection of any economic activity (except banking), which includes after-sales in general.
Law 11/2021, on prevention and fight against tax fraud, the same law that has suspended the Registration Tax until December 31 of this year, includes another important novelty for after-sales; Specifically, in its article 18 it limits the cash payment to 999 euros, thus modifying Law 7/2012, as stated on its website
Autonomous Association of Employers of Vehicle Repair Workshops of Pontevedra (Atra).
from July 11 they cannot be paid in cash operations in which any of the intervening parties act as an entrepreneur or professional, with an amount equal to or greater than 1,000 euros or its equivalent in foreign currency. Consequently, this limitation affects the collection of any service performed by a workshop or a salesperson. However, the aforementioned amount will be 10,000 euros or its equivalent in foreign currency when the payer is a natural person who justifies that he does not have his tax domicile in Spain and does not act as an entrepreneur or professional.
This prohibition affects any payment made with paper money and metallic currency, national or foreign; Bearer bank checks denominated in any currency, and any other physical means, including electronic ones, designed to be used as a means of payment to the bearer. This limitation will not be applicable to payments and income made in credit institutions.
Jose Maria Mollinedo, General Secretary of the Finance Technicians Union (Gestha), as collected from
Infotaler, this regulation will affect “the mechanical workshops, since many of the repairs they carry out easily exceed this amount of 1,000 euros and it is not uncommon for them to be paid in cash.” «More cash handle and sell products with high prices, they are the most exposed to jumping this limit by will to evade or by simple ignorance. And it is not uncommon for it to happen. Although the majority of the population, to pay more than 1,000 euros, uses a card, it is common in some sectors that a lot of cash is handled for all types of payments ”, he specifies.