Cash is not close to disappearing, but it is true that fewer and fewer people opt for this payment method. We are used to card operations and contactless payment platforms such as Bizum or Google Pay, among others, which make it possible to use the mobile to carry out transactions without having to reach into the wallet. But the truth is that for operations such as paying for car repair we must resort to them, since there is a maximum amount that prevents us from doing it in cash, as the norm dictates.
The law establishes a limit of 1,000 euros
In force since 2021 as one of the measures to prevent and fight tax fraud, the truth is that the law establishes in its article 18 what is a limitation on payment in cash, reducing this to a certain maximum amount.
Or what is the same; As of that date, in Spain operations with an amount equal to or greater than 1,000 euros or its equivalent in foreign currency cannot be paid in cash.
In this way, it is intended that a large number of payments in the workshop are made electronically, since the invoices are usually more than 1,000 euros, and thus monitor many operations that, if the payment were made in cash, could not be reflected in the accounts of the companies.
What do we have to take into account?
In this sense, anyone who intends to take their car to the workshop for some type of breakdown, will be affected by the new regulations introduced, since the payment of more than 1,000 euros for the repair or services provided is prohibited.
Something important to highlight is that, although the law applies to all sectors, the automotive sector is expected to be one of the most affected, since it is common for repairs in workshops to exceed this figure, and it is not uncommon for the amount is paid in cash.
Therefore, and as a measure that directly affects automotive workshops , this means that, after years of receiving payment in cash for their services, workshops must adapt to this new type of payment methods, such as transfer and electronic media. However, it directly affects credits in this way:
- Bank checks addressed to the bearer and suitable for any type of currency.
- Both banknotes and coins, regardless of whether it is national or foreign.
- Any other type of physical medium, such as the electronic format.
The law obliges you to keep proof of payment
In those, what we have is that there is a single exception; and it is that the payer is a natural person who justifies that he does not have his tax domicile in Spain and does not act as a businessman or professional.
In these cases, the maximum amount to be paid in cash will be 10,000 euros or its equivalent in foreign currency. And, in all cases, for the purposes of calculating the indicated amounts, the amounts of all the operations or payments into which the delivery of goods or the provision of services could have been divided will be added.
Likewise, and in the case of making a cash payment of more than 999.99 euros, the offenders will be both the payer and the recipient of the payment, that is, both the customer who attends the repair and the workshop that performs it.
And what about the way to pay the amount? Well, the law establishes that it cannot be done partially either , so, in the event that the invoice amounts to, for example, a total of 2,500 euros, it cannot be paid in amounts other than 500 in cash and 2,000 in transfer . The reason is none other than because the total amount of the invoice exceeds 1,000 euros.