Last updated: 23 April 2015
CASH PAYMENTS: NEW THRESHOLDS AS OF MAY 9
As of May 9, 2015, cash payments exceeding certain amounts will be banned for transactions between companies and natural persons, as well as for collections made by companies from natural persons or other companies. Thus, the scope of the operations and the concerned entities was enlarged in relation to the provisions of the former Government Ordinance no. 15/1996. These new provisions were introduced by Law no. 70/2015 aiming at strengthening the financial discipline related to cash payments and collections, repealing Government Ordinance no. 15/1996. These amendments are presented to you hereinafter.
LIMITATION OF CASH PAYMENTS : WHO IS AFFECTED ?
In accordance with Law no. 70/2015, cash payments and collections between legal persons, self employed persons, individual companies, family companies, natural persons carrying out independent activities or other entities, either natural or legal persons, will only be performed by noncash payment instruments.
As regards transactions between natural persons, cash payments or collections performed following ownership transfers, service supply, as well as those representing the a credit or a reimbursement thereof will be performed within the limits of a daily threshold of 50000,00 lei / transaction.
EXCEPTIONS
Nevertheless, the Law introduces a number of exceptions from the abovementioned rules. Thus, a number of thresholds for cash payments or collections are introduced. Therefore, cash collections from the economic operators provided by paragraph 1 of the Law (listed above) are allowed within the limits of a daily threshold of 5,000 Lei / paying economic operator and are limited to a total threshold of 10,000 Lei per day.
Hence, Cash & Carry stores, such as Carrefour, Cora, Metro etc. cannot collect more than 10,000 Lei in cash from an economic operator (trader). The 10,000 Lei per day restriction is also applied to natural persons, who are not entitled to make cash payments above this value at a single store.
Economic operators (traders) can make cash payments to a natural person within the limit of 10,000 Lei per day per person for a series of operations, such as the payment of dividends or the purchase of a good from another natural person etc.
SANCTIONS
Please note that the Law prohibits partial collections or payments as long as such operations aim at avoiding the 5,000 Lei or the 10,000 Lei threshold. For example, an economic operator wishing to pay in cash an invoice exceeding 10,000 Lei can only pay 10,000 in cash and the difference must be paid by noncash payment instruments.
The same is applies to natural persons, who are not allowed to split payments for transactions exceeding 50,000 Lei or to split a transaction exceeding 50,000 Lei.
Non-compliance with the provisions regarding the thresholds applicable to collections and payments is punished by civil sanctions. Such sanctions suppose the payment of a fine representing 10% of the amount collected / paid exceeding the thresholds set forth by Law no. 70/2015, but no less than 100 Lei.
A more severe fine (from 3,000 to 4,500 Lei) is applied to economic operators granting any kind of advantages to their clients, so as to convince them to pay in cash.