Spanish government to limit cash spending to €1000

THE Spanish government have announced a series of proposals designed to tackle tax fraud.  

The first is to lower the limit on the amount of cash that can be spent in one transaction from an existing €2,500 to €1,000. Secondly, a new IVA management system, named The Immediate Supply of Information (SII), will come into effect from January 1 2017 which is designed to streamline the process of filing IVA returns, provide live tax data and improve control over taxation.  This new system will be used by around 80 per cent of those paying IVA in Spain.

The government´s final proposal is to clamp down on deferred IVA payments and on those who avoid paying IVA, which they hope will increase revenue to the Treasury.  Political party, Ciudadanos, are insisting that the Treasury starts by recuperating any taxes not paid during the tax amnesty as soon as possible.

These measures are due to be approved in the Council of Ministers on Friday 2 December.