The government has announced an important change to a law, and a new budget modification for this Friday.
On the one hand, the law limiting payments in cash of over €2,500 will be changed to drop this to just €1,000. This means it will be illegal to pay bills over €1,000 in cash when one of the participants is a fiscal entity (company).
And large companies (and those who file their IVA return on a monthly basis) will have to file IVA (VAT) invoices instantaneously with the government online. They can’t deduce the IVA for three months, but will have to comply with the new annoying laws… About 80% of all IVA contributors will be included in the new measure according to the State.
All this is to have another crackdown on the submerged economy, and make people pay their taxes. Oh, and you won’t be able to defray tax payments in the future. The State says that with interest rates so low you’ll have to borrow from the banks instead of from the state.
And on the other hand, taxes on booze and tobacco will go up in the new budget. There will also be a new tax on sugary drinks. The state expects to raise around €2 billion via these new taxes, although the exact amounts haven’t been published yet. The new taxes will bring Spain into the general line with the EU.
The State will also cut public spending by €900 million next year.