Cash, from 1 January 2022 payment limit and penalties

Less cash and more traceable payments. This is the goal of the entry into force, on 1 January 2022, of the new limits on the use of banknotes. And the consequent modification of the sanctions for those who do not respect the rules. The new payment threshold had already been foreseen for some time, with the publication in the Official Gazette of law number 157 of 2019, recalls laleggepertutti.it. Recently, it was confirmed by the Ministry of Economy and Finance. Therefore, it was made official that for cash changes the payment threshold from € 1,999.99 to € 999.99. Accuracy is important because it can cost a penalty: paying 999.99 euros in cash from the first day of 2022 is lawful, paying 1,000 euros, that is, one cent more, no. Cash: what payments are prohibited? The new cash threshold from 1 January 2022, set at 999.99 euros, is applied to any type of payment, i.e. the transfer of money between individuals or legal entities. This means that not only the purchase of a good or the service of a professional but also a donation or a loan to a child for an amount of at least 1,000 euros must be justified and made with a traceable type of payment, such as a bank transfer. However, nothing changes with regards to bank withdrawals and deposits, since these are not money transfers between two different subjects but movements that affect only one person. To understand, it will be perfectly legal to go to the bank to withdraw 1,500 euros. What will not be allowed is to use them all together to make a single payment. They can be kept in the house to be spent a little at a time within the established threshold. The same applies to payments. Let’s take the case of those who received 500 euros in cash for their business, then 400 euros and then 600 euros again. In total, 1,500 euros that can be paid into your current account together. It does not violate the rules on the use of cash even to do ‘a little’ and a little ‘, that is to make a payment of at least 1,000 euros using both cash and a traceable instrument. For example, to pay for a service that costs 1,800 euros, you are allowed to give the professional 900 euros in cash and 900 euros by check, credit card or bank transfer. The important thing is that the sum in cash always remains below the limit of 999.99 euros Cash: penalties for offenders The new threshold of cash payments must be respected not only by those who pay but also by those who receive the money : both can be punished if the limit of 999.99 euros is exceeded. The law provides that with the lowering of the cash limit, the minimum penalty also decreases. Basically: from 1 July 2020 to 31 December 2021, the threshold for cash payments is € 1999.99, while the minimum penalty applicable in the event of transgression (minimum, not fixed) is € 2,000. Now, with the limit of 999.99 euros from 1 January 2022, the legal minimum will drop to 1,000 euros. However, this rule is not valid for professionals or for anyone who does not report irregularities to the territorial directorates: in this case, the penalty remains fixed from 3,000 to 15,000 euros, therefore with a minimum threshold equal to three times the one provided for those who commit the It must be said, however, that both those who transgress the rule on the use of cash and those who do not communicate the irregularity, being obliged to do so, can benefit from the offering, albeit in a different way. For those who commit the infringement, the penalty will go from a minimum of 4,000 euros to 2,000 euros. Instead, whoever has to communicate an irregularity, on the basis of current and future provisions, will continue to pay a minimum of 5,000 euros, equal to 1/3 of the maximum.