Currently there are few people who always pay with cash. In recent times, applications for making online payments have had an exponential growth in users, with Bizum at the forefront.
The most common thing is to pay via mobile, either for the purchase of a product, to share the cost of a meal with friends or family, to receive money to make a gift or simply out of necessity and bizum It has made paying much more convenient.
Gone is the time to take out the wallet and count the bills and coins. But, Is it necessary to declare all payments made through this digital tool? Now that the start date of the 2022/23 Income Tax return campaign is approaching, this is a fairly frequent question.
The answer depends on the limit of money being sent. In the case of Bizum, this tax is the same as that of bank transfers. Some Bizum payments are subject to fiscal control, since it is a financial channel like any other.
As it is a banking service, the movements carried out in this application can be notified by the bank, although only if Tax authorities it requires. For this reason, the Tax Agency can demand that this money be declared.
How much money can be sent through Bizum without declaring?
Let’s start from the base that perhaps worries us all the most and is to know what is the limit that the Treasury allows without having to declare it. Well, as established by the Tax Agency, the limit of money that can be sent by Bizum without having to include it in the 2022/23 Income Statement, even though the payments are subject to tax control, is €10,000 per year.
Quantities exceeding this number must be declared in our annual return. The Tax Agency will only investigate Bizum payments if the circumstances so require, so they do not have to be reflected in any box of the tax return. Rent 2022/23. In short, there is nothing special to do in the declaration if Bizum has been used for small amounts.
When do you have to declare the Bizum to the Treasury?
As TaxDown specialists explain, the general answer is that small amount transactions do not have to be declared. However, Yes, they must be declared in three specific cases:
- if you are autonomous
- If you receive income that represents a return
- If you make a payment through Bizum of more than €10,000.
In the first case, that of the self-employed, reference is made to the payment of the corresponding economic activity through Bizum. That is to say, If as a freelancer you receive your salary via Bizum, you must declare it, since it is a benefit resulting from a professional activity.
On the other hand, we have those people who are not self-employed but who do receive money via Bizum that represents a certain return. Here, for example, we would find rental houses or garages, although We must be especially careful when dealing with large quantities.
Finally, the Treasury establishes, as we have already mentioned, that any pay that is done through Bizum cannot exceed €10,000 per year. And, if it exceeds them, that person is obliged, in theory, to declare it.
What happens if you exceed that amount and have not declared it?
Here we are already entering swampy terrain, because it may be the case (we think it has been due to ignorance) that you find yourself in one of the three previous cases, You do not declare it and the Treasury inspects you.
Tell you that you will be penalized with a fine that It could reach 20 or 30% of said surcharge, to which interest would also have to be added. For example, if €15,000 had been sent, the fine that the Treasury would impose could be up to €3,750. Of course, note that, within the seriousness, the infraction is not considered very serious, since this sanction is the same as if you do not report an income that you have received by another payment method.
How does the Treasury control the Bizum?
First, indicate that there is a series of actions that may be suspicious for the Treasury and may ask you to justify them:
- Enter €500 bills
- Withdraw more than €1,000 from ATMs
- Make deposits or payments of more than €10,000
- Deposit more than €3,000 in cash in the bank
- Have loans and credits of more than €6,000
The Tax Agency has “numerous information of a financial naturewhich is obtained through various sources, “such as informative returns, requests to obtain information made by the AEAT itself or through communication from the taxpayer himself”, as detailed to the self-employed and entrepreneurs magazine.
If you meet or exceed any of the above limits, Your bank will provide information in this regard to the Treasury. And it is that, the financial entity will be obliged to inform of these operations, providing the information of the account, holders and the economic amount.
Keep in mind that communication between the bank and the Treasury is very fluid, therefore, even if you think that what you do with your money is something private, you have to know that The Treasury can consult the movements of your bank, although if they want to investigate in depth, they must request an inspection and ask the judge for permission.
Returning to Bizum and to close the topic, all that remains is to highlight the figure of €10,000 per year. A sporadic movement for any issue will go unnoticed, but if Bizum is used frequently and there are always movements between the same two people, the Treasury could smell that something is wrong.