On 1st July 2020, new restrictions on cash payments in Italy will come into effect and the limit will be lowered, compared to the current amount, aimed at combating money laundering and tax evasion in Italy. Let's have a look at everything you need to know, including the changes and also the possible penalties if the new restrictions are not obeyed.
Currently, the limit for cash payments is set at 3,000 euros, but as of 1st July 2020 the cash payment limit will drop to 2,000 euros (except for money transfers, for which the upper limit is already set at 1,000 euros). Basically, for payments up to 1,999 euros it is possible to give physical money to another person or company, but from 2,000 euros upwards, it is compulsory to pay with traceable methods, such as with a credit or debit card.
In 2021, the cash payment limit will be lowered further to 1,000 euros. For now, penalties for cash payments are proportionate to the actual amount of the violation committed and start at a minimum of 2,000 euros. In this sense, bear in in mind that both parties are involved in the violation, i.e. the person making the payment and the person receiving it, and both will be fined.
For amounts up to 250,000, the penalty ranges from a minimum of 2,000 to a maximum of 50,000 euros for the contracting parties; for amounts above 250,000 euros, the penalty ranges from 15,000 to 250,000 euros. For professionals obliged to report in both cases, the sanction ranges from 3,000 to 15,000 euros.
Therefore, the current legislation forbids cash payments to the same person or company on the same day, if the cash amounts are equal to or greater than 2,000 euros. However, the same legislation allows for cash payment of economic operations that lend themselves to this situation: this includes deposits and withdrawals made to one's own account: this type of operation currently has no limit and won't incur any sanction (since it is not a matter of money transfer between different subjects). The same applies to payments made in cash instalments, such as dental care.
Article seen at: Limite pagamento contanti dal 1° luglio 2020: importo, sanzioni e novità (Money.it)
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