Bizum has revolutionized the world of personal finance in Spain. In recent years, this new modality for making transfers with just a phone number has become widespread in Spain. But users should respect the limits and rules for operating with this service if they want to avoid a fine from the Tax Agency. And it is that the administration establishes the maximum amount of money that can be sent without declaring.
Whether it’s to pay for dinner, balance the bills for a shared trip, or even pay for a store order or purchases in smaller businesses, Bizum has become an essential application on almost any mobile. Although only one bank account can be associated with a phone number. Therefore, if you have different bank accounts, you can only use this payment system with one of them at a time, except if you have several phone numbers. However, it is possible to change the accounts associated with the phone as many times as needed.
One of the most frequent doubts about the Treasury and the Income statement is how bank transfers are taxed and from when the institution begins to investigate them. Thanks to tools like Bizum, it is possible to exchange large sums of money in just a few seconds or days: up to 500 euros. However, the amount to be declared is different.
What is the limit of money that can be transferred in Bizum?
The platform’s rules make it clear: the maximum money that can be sent via Bizum is 1,000 euros. On the contrary, the limit set by the Treasury to have the obligation to declare the amount entered through this digital system is 10,000 euros per year. In case of exceeding it, everything received must be included in the Income statement.
This limit applies to individual users. Those who are self-employed or have a business and decide to include Bizum in the payment method they accept, will declare the money transfers they receive as any other income, either in cash or by bank transfer. Being a digital system, the Treasury can easily control the movements of telephones that are associated with an account or a mobile.
This is the limit of transfers that you can do by Bizum
As with money transfers, there is also a limit to the total number of transfers that can be made per month. Bizum indicates that users cannot make more than 60 money transfers per month. If this limit is exceeded, it is the platform itself that warns that it is not possible to carry out the operation.
The businesses and companies that use this system are not subject to any limit and will continue to operate normally. This is so because the rules change for professionals who use Bizum as another method of payment and collection.
What fines can the Treasury impose on me?
The General Tax Law states that banks have the obligation to provide the Tax Administration with “all data, reports, records and supporting documents with tax significance related to compliance with their own tax obligations or deducted from their economic, professional or financial relationships with other people.”
For their part, taxpayers must account for transfers of more than 10,000 euros through the SI module and those who do not, face penalties of between 600 euros and up to 50% of the amount sent. In addition, if the origin of the money is not justified, it is possible to impose light fines of up to 60,000 euros, or if they are very serious, of more than 150,000 euros.
