This is how self-employed Bizums and companies must declare

"I'll make you a Bizum." The phrase has become very popular due to the rapid growth of this Spanish platform created as a means of digital payment between individuals. But Bizum has also extended into the field of business. For this reason, we explain to you what is the tax treatment associated with its use.

Bizum is a mobile service that allows instant payments through banking institutions' apps, so more and more SMEs and freelancers have been incorporating it as another way to make transactions thanks to its ease of use and, above all, for its popularity among consumers

Security is, in principle, another weighty argument for its expansion, since the user does not have to enter the bank card details, but only the phone number.

Of course, while for individuals Bizum has money limits assigned to its operations, companies and freelancers can operate without any limit.

It should be borne in mind that at the beginning Bizum was designed to close small transactions between individuals. When the use is limited to these minimal movements of money and does not constitute a commercial transaction, no notification to the Inland Revenue is required.

However, if the amounts received through Bizum exceed 10,000 euros, it will be necessary to declare this to the Tax Agency and take it into account for the income statement.

Bizum in the company

When we talk about companies or freelancers, there is little doubt: Bizum is a means of payment that has the same tax treatment as payment in cash or credit or debit cards. In this way, these payments in the professional field have their impact on VAT, personal income tax or corporation tax, as the case may be.

It should be remembered that any payment by Bizum has a traceability that can be tracked by the Treasury by contacting the bank. It is convenient to have Bizum integrated into a company account to have detailed and differentiated payments of any personal account of the employer or freelancer.

If you need more information, do not hesitate to contact DATA AND SERVICES