The IRS declaration for people receiving income on Portuguese soil is coming. For this purpose you have until February 25 to validate your invoices in order to benefit from the related tax advantages.
IRS 2021, remember to validate your invoices
The Portuguese system has a distinctive feature in terms of’IRS, in fact, every time you make a purchase using your taxpayer ID number (groceries, healthcare, clothing, etc.), that purchase is automatically recorded in your financial portal and counts toward certain limits, which will then be deducted from your IRS tax bill.
In this article, we'll explain how to verify that your invoices have been approved and posted to the correct section.
[arm_restrict_content plan=»22,21,17,15,» type=»hide»] [armelse]- Start by logging in to your finance portal using your personal login credentials.
- On the home page, select e-Invoice.
- Then select Expenses Deductible on the IRS Return (Expenses deductible for IRS purposes).
On the next screen, you’ll see the total amount you’ve already accumulated from your various expenses associated with your taxpayer ID number; they’re categorized by sector.If you have already accumulated 250 euros in general expenses, this means you have reached the maximum deduction in this category; there is no need to check further. All your receipts for groceries, clothing, and miscellaneous purchases are categorized in this section; you’ll need to check the categories one by one to make sure your receipts have been properly recorded.
Unlisted Invoices
Next, you'll need to check your "unlisted" invoices and click the button Additional Information on Invoices. In this section, you will find invoices entered by merchants with multiple business activities, which make it impossible for the tax authorities to classify these expenses.
You must therefore review each invoice and manually categorize them into the correct categories. If you make a mistake when assigning a category, or if you find an invoice that has been assigned to the wrong category, you can change it.
Healthcare Costs
If the system alerts you to invoices for healthcare expenses subject to the standard VAT rate that do not include prescriptions, click Match revenue and review the listed expenses.
If you have a doctor's prescription justifying any of these expenses, check the box next to Sim in the answer to the question I have a recipe (I have a prescription.) Since the bill may include purchases other than prescription medications, please indicate the amount covered by the prescription.
If all expenses are covered, just enter the total amount.
A mobile app
This year, the tax authority launched an app called e-Invoice, which allows you to approve pending expenses using your phone.
The app is available for Android and iOS; the new app allows each taxpayer to organize their invoices and view their accumulated benefits.
You can also record invoices by scanning the QR code.
Be sure to check any pending bills for your entire household (husband, wife, children).
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