In what cases is it necessary to declare Bizum payments on the 2023 Income Tax Return?

On April 11, the Income Tax return campaign corresponding to the 2022 fiscal year. As of that date from which taxpayers have been able to prepare the draft of the return and submit it. The deadline will be open until June 30, however, the first doubts have already arisen, and one of the most frequent is whether they are due or not declare the money movements that are carried out through Bizum.

Bizum in the Income Tax Return

Bizum It is one of the most common payment platforms that allows you to make instant money transfers in a fast, convenient and secure way through the bank's mobile application. To use Bizum, you only need an account number at a bank that is linked to Bizum, to have the bank's app downloaded and to know the mobile number of the person to whom the money will be sent. The simplicity and the promptness of the platform have made it so popular that it has even disbanded to other forms of payment, such as bank transfers, which take longer to arrive. Considering that Bizum is such a widespread tool, it is logical that there are taxpayers who wonder if this Year it is necessary to declare these types of payments and how they should be made.

When do you have to declare payments for Bizum?

Payments made through Bizum will have to be declared in some cases. Following the regulations of the Tax Agency, there are three possible situations:

• If the payment is more than 10,000 euros. When you send or receive more than 10,000 euros a year, it will be necessary to reflect this in the return. The bank itself will inform the Treasury of these movements and operations.
• If you are self-employed and Bizum is the platform you use as a payment method of your services to carry out economic activity, something that is increasingly common. As it is an economic benefit derived from a professional activity, it does have to be declared.
• You must also declare your bizum if you use the platform to receive income with which you obtain economic return. For example, the payment of a rent or a parking space. If those revenues exceed 10,000 euros per year, they would have to be declared.

The Treasury states that any payment made through Biuzm cannot exceed 10,000 euros per year. In the case of doing so, the person will have the obligation to declare it. This means that occasional shipments to family or friends do not have to be reported if their annual amount is lower than the figure mentioned above.

How to declare payments through Bizum?

At the moment there is no specific section or box in the Income Tax to declare bizums, so this is done depending on the type of income. Payments through this platform are declared in the same way as other activities for which economic return is obtained.The way to declare this money is the same as if the income had been made in cash, by checks, through transfers or by any other means. In other words, income of more than 10,000 euros is declared as money that has been sent or charged to you, as are returns. Although when it comes to declaring the money received for a service or sale (a professional activity, in short), as is the case of self-employed workers, it will have to be done as a result of economic activities. That income must go accompanied by the corresponding VAT and personal income tax. If donations have been received, it will be done as a capital gain. Finally, if the money comes from renting a room, it will be as a return on real estate or furniture capital. Even so, when it comes to declaring the money in these three cases, Bizum makes it very simple. In the bank's app, when you enter the section corresponding to this platform, a list with all the deposits and transfers of money, making it easy to access the amounts, dates and other necessary data.

The important thing is to consider Bizum like any other method of sending and receiving money that is normally declared, for example, bank transfers. In addition, taxpayers should know that, if Bizum payments are not included in the Income Tax Return, they may be sanctioned by the Tax Agency. In these cases, the fine would vary depending on the amount and time elapsed. Finally, don't forget that there are currently several mobile applications that simplify the Income Tax Return process to make it much faster and hassle-free:

• App developed by the Tax Agency
• TaxDown
• Declaring
• Taxfix
• Tax Scouts