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by LDP | Jul 6, 2020 | infoflash

Reduction of the limit on the use of cash from 1/07/2020 – Tax credit on fees for electronic payments






From 1.7.2020, the limit on the use of cash will be lowered from the current €2,999.99 to €1,999.99.

This limit will remain operational until 31 December 2021. From 1.1.2022, the limit will become €999.99.

For violations committed and contested from 1.7.2020 to 31.12.2021 the minimum limit will be €2,000.00 (and no longer €3,000.00). For infringements committed and contested from 1.1.2022, on the other hand, the aforesaid minimum amount will be further lowered to EUR 1,000.00.

From 1.7.2020, the 30% tax credit in relation to merchant fees for traceable electronic payments made by final consumers shall also apply.



The prohibition to use amounts equal to or greater than EUR 2,000.00 from 1.7.2020 and equal to or greater than EUR 1,000.00 from 1.1.2022, concerns the transfer of cash (and bearer securities) made in any capacity between “different entities” (natural or legal persons).

The limit on the use of cash, whatever the cause or title, also applies when the transfer is made with several payments below the threshold that appear “artificially split”.

Banks, Poste italiane S.p.A., electronic money institutions and payment institutions must be used for such transfers.



According to the FAQ of the Treasury Department 3.10.2017 no. 8, by the words “different subjects” the legislator intends to refer to separate legal entities.

One thinks, for example, of the transfers that take place between:

  • two companies;
  • the shareholder and the company of which he is a member;
  • subsidiary company and parent company;
  • legal representative and shareholder;
  • two companies having the same director;
  • one sole proprietorship and one company, in which the figures of the owner and the legal representative coincide.

All for purchases or sales, for the provision of services, for purchases by way of capital contribution, or for the payment of dividends.




A fractioned transaction is defined as a unitary transaction from an economic point of view, of a value equal to or greater than the limits, carried out through several transactions, individually below the said limits, carried out at different times and within a limited period of time set at 7 days, without prejudice to the existence of the fractioned transaction when there are elements to consider it as such.




LDP remains at your disposal for any further clarification.

Milan, 06/07/2020



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