Changes to cash payment limits that will apply from January 1, 2023
Under current law, cash limits apply only to transactions between businesses, but from 1 January 2023, limits will also apply to cash payments between consumers.
The limit on cash transactions between businesses has been amended numerous times by the Polish legislator. Pursuant to Article 19 of the Act of 6 March 2018 – Business Law, settlements between businesses must be made using payment accounts when the transaction value exceeds PLN 15,000. This means that transactions between businesses can only be settled in cash up to PLN 15,000. However, as of January 1, 2023, under the act implementing the so-called Polish Deal, this transaction limit will be reduced to PLN 8,000.
Due to the application of new regulations, transactions must be performed using a payment account when:
- the other party to the transaction is another entrepreneur,
- the one-time payment value exceeds PLN 8,000 or its equivalent, and transactions in foreign currencies are converted into PLN at the average foreign exchange rate announced by the National Bank of Poland on the last business day preceding the date of the transaction.
As a consequence, if the entrepreneur fails to comply with the above regulation, he will lose the right to settle the part of the amount exceeding PLN 8,000.
As mentioned above, the latest changes will also apply to consumers. As of January 1, 2023, the amendment to Article 7b** of the Consumer Rights Act will come into effect. According to this provision, consumers are obligated to make payments via a payment account if the single value of a transaction with a business – regardless of the number of payments made – exceeds PLN 20,000 or its equivalent in foreign currency. It's worth emphasizing that the new regulations do not provide for legal consequences for consumers who pay cash for transactions exceeding PLN 20,000. However, the consequences of such action will affect the recipient of those payments, i.e., the business.
The introduction of new regulations is primarily aimed at tightening the state's financial system and limiting illegal activities. Undoubtedly, for both businesses and consumers, such solutions will entail a number of new difficulties and restrictions.
This alert is for informational purposes only and does not constitute legal advice.
* Act of 6 March 2018 - Entrepreneurs' Law, Journal of Laws of 2021, item 162
** Act of 30 May 2014 - Consumer Rights Act, Journal of Laws of 2020, item 287
