Controlling the E-Factura

The validation process of deductible expenses on IRS has become electronic. However, there are still questions and problems that arise in the Portal of Finance. Learn how to control the E-Invoice to make the most of their expenses.

The repayment of the irs is one of the most anticipated moments by taxpayers, since the amount received is often to savings or to help pay some expenses. Taxpayers accustomed themselves every year, adding up the bills with various deductible expenses (housing, education, health, etc), but will no longer be necessary to go through the maze of bills and papers. The process has become all electronic with the E-invoice and when a taxpayer purchases a good or a service has even ask for the bill with the Tax Identification Number (TIN) if you want it to be considered for IRS purposes. The value should appear later on page E-Making available on the Portal of Finance. However, this implies that taxpayers have more work during the year to see if in fact the amounts spent and the required bills are declared by companies. And this surveillance effort is very important because it dictates what is going to receive or pay the IRS the following year. For those who have children, the expenses must also be controlled. Ideally, do not leave everything to the end and do this check regularly so as not to forget the bills and expenses you have and did. Learn what to make and how to control the invoices on the Portal of Finance.

1. You have to ask invoice with Tax Identification Number (TIN)?
Yes. Just be deductible expenses in IRS whose invoice has the NIF and is communicated electronically to the IRS.

2. It is up to the taxpayer communicate invoices to the tax authorities?
No. These are the companies that have to do so until the 25th of the month following the issue of the invoice. For example, if the taxpayer is today the grocery store, the company will have until November 25 to report the bill. However, if you notice that the invoice has not been submitted, the taxpayer may do so in the Portal of Finance. In this case, you should save up the bill.

3. The expenses of the children must have the NIF dependent?
No. According to AT, the bills may have both the NIF parents, as their children. In the divorce situation with joint custody of the children, the bills that are issued with the tax number of the children shall be shared equally between the parents.

4. it must ask password for their children in the Portal of Finance?
Yes. This is useful for invoices that are communicated with the NIF children. For example, if the children are in a private school, tuition invoices can be associated with the tax number of the children. Thus, the bills do not go to the E-Invoice taxpayer page, but your child. That is why it is important to ask for a password for their children, to ensure that the expenses of dependents are to be reported to the tax authorities. After making the request on the Portal of Finance, the password will be sent by letter to authenticate to the Portal of Finance. In addition, parents can create a direct access to the E-Invoice page of the children through the Finance Portal user management system. The system turns out to be quite ‘labor’, for example, for a family with two children, because there will be four pages to watch.

5. And it is found that has bills? Outstanding?
Often arise outstanding bills. It often happens because it is not defined the sector of services or the sale of assets. This happens when a company declares various economic activities to the tax authorities. For example, a supermarket may have various activities associated: in addition to trade, can have associated health, restoration or education. The taxpayer in this case indicate the sector. Invoices can also be pending if the taxpayer is dependent worker and have green receipts. In this case, the question arises on the site if the expenditure in question was or was not done under occupation.

6. After that healthcare bills can enter the IRS?
After some initial confusion and advances and retreats of the government, it stood to products which are 6% VAT is deductible and subject to a rate of 23% as well, but these will need to have a prescription to be accepted . It is up to taxpayers to say whether the product has or not prescription (there is a separate field in the Portal of Finance for this purpose). If the invoice has two types of well, for example, a drug and a shampoo 6% to 23% that was not prescribed by the physician, it is to say that the taxpayer has no revenue. Spending on spectacle lenses and ophthalmic lenses sold by entities which have an activity in the specific sector of the retail sale of optical equipment in specialized stores are tax deductible.

7. What expenses may be deducted on IRS as education expenses?
The cost of textbooks, payment of nurseries, gardens-of-childhood, milk kitchens, schools, educational institutions and other educational services can be deducted from the IRS. The cost of nannies and tutors are also deductible. The? Case of school supplies is different, since these expenses are no longer deductible. So, notebooks, pencils, pens, etc., fail to tell the IRS.

8. The school meals are deductible?
This is one of the issues that has generated more confusion. Finance ensure that this type of expenditure is accepted, but there are problems when meals are not provided by schools, but by municipalities or by external companies. The problem arises because these entities often do not have an activity code (CAE or classification of economic activities) linked to education. This makes the expense not go immediately to the education category. On the other hand, in the case of external companies providing school meals through municipalities, VAT for this service is 23% and is not accepted. There is, therefore, expenses that are accepted and others that are not currently being accepted.

9. What are the familiar overhead?
In the category of household expenditures fit all those who do not have a specific deduction. The bills of electricity, water, gas, clothing, supermarket all go for that category. The limit is 250 euros, so it is very easy achieve it. Most taxpayers already have probably reached this ceiling long. Here we must be aware that if the school books or medicine, for example, are purchased at a supermarket along with other shopping, the taxpayer must ask for separate bills. Otherwise, the costs will stop all the same category, i.e., household expenses. In this case, taxpayers can go out to lose, since the ceiling of 250 euros is easily attainable.

10. As the bills? Public health entities? And education are communicated?
Public authorities of health and education are not required to pass bill. The amount paid will be reported to the IRS by those entities by the end of January of the year following that in which the expenditure was made.

11. They should be stored invoices?
The best thing is to continue to keep the bills, especially those in which the taxpayer is to be included in the Finance Portal.

12. And who does not have Internet?
This is another of the issues that most times has been raised by the experts, who criticize the fact that this system, fully electronic, power harm those who do not have access to the Internet. Ask for help from a family member, expert or from the tax office are some of the hypotheses.

News source : Ecomómico

New public accounting system

The new public accounting system was published this month in the Official Gazette and promises to end the accounting fragmentation of public bodies, local and regional.

It is urgent to implement the new management accounting system? Public – the so-called System of Accounting Standards for Public Administrations (SNC-AP), which was published last September 11. The subject was last debated in the V Congress of the Order of Chartered Accountants (OTOC) and experts were unanimous. The values ​​of truth and transparency were echoed by almost all the speakers in the congress to highlight the need to implement the new system.

The aim of the SNC-AP is to end the fragmentation of accounting systems that exist today in public administration, standardize procedures and increase the transparency of accounts. However, experts warn that we need political support, technical expertise and the IMF are in Portugal to help implement the system.

The President of the Court of Auditors (TdC), Guilherme d’Oliveira Martins, considers that “although much has been advanced,” the process “public accounting lacks development and improvement”, recalling the recommendations that TB has been doing Over the past few years. That it is recognized in the decree-law establishing the SNC-AP: “It can be said that the accounting standards in Portugal for the public sector is now outdated, fragmented and inconsistent”, and now “coexist accounting systems” .

This is due to the advance of the Accounting Standardisation System (SNC), towards the adoption of relevant standards of international accounting standards (IAS / IFRS) and also to maintain an accounting system in the public sector which is based on national standards They have since been revoked as is the case of the Official Chart of Accounts (POC). This coexistence generates “a serious problem of technical inconsistencies” and implies “many adjustments that are not desirable and who question the reliability of the information.” The problem sit on the Public Administration but with particular emphasis on the Budget Directorate-General, the Local Government Directorate-General and the National Institute of Statistics which have to add the information.

The chairman of OTOC, Azevedo Domingues, believes that the new system “will be a revolution,” considering that will be achieved greater transparency in public accounts. Similarly, Guilherme d’Oliveira Martins said that “it is essential that the model adopted becomes an effective reality for all public bodies” on behalf “of truth and transparency.” Former finance minister also warned of the need to apply the SNC-AP logo in 2017, after an implementation period for the next year and left a warning: “The TB will be extremely tight so that the preparation is done and that there be no further delay. ”

A university professor, Paula Gomes dos Santos warned that “there are many entities to produce regulatory accounting” that are not always made compatible and said it was necessary “to have a public accounting that is the basis of a transparent governance”. In turn, the chairman of the Accounting Standards Board, António Monteiro, defended the importance of the Directors of the universe? Public be integrated and considered that the main challenge is the proper implementation of SNC-AP. The expert said it is necessary “the general recognition of the need for change and political support,” but you also need to ensure that there is “expertise” to put into practice. António Monteiro also said that the IMF is in Portugal to help implement the system and being held meetings at the Ministry of Finance.

News source : Ecomómico

IVA repayments

IVA repayments, new rules. Differences in ‘e-invoice’ catch return of IVA. Companies can not have disagreements or be in default.

Late last year entered into force new tighter rules for granting refunds of IVA. Find out what has changed.

1 bills Control
The Plan to Combat Fraud and Evasion and Customs 2015-2017 approved control measures from the obligation to issue invoices and communication and control of obligations IVA.

2 Lack? Divergences
For the VAT refund is granted there can be no differences between the value of output tax and the amount of deductible VAT (repayments) by companies in the periodic return and the amount of IVA contained in the invoices sent to the system ‘e-invoice’ . If differences exist refund is suspended. The company will then have to be notified to rectify the discrepancy.? If there is no place to this regulation, the application shall be dismissed. This system is being criticized because it catches many cases that are not, in practice, non-compliance, and because rectification of divergence implies a lengthy work for companies, as reported the ‘Business Journal’.

3 Absence? Default
Taxpayers can not be on fiscal and declarative event of default of payments on account of tax obligations or communications to the AT, particularly for IVA, IRS or IRC.

4 relations with non-existent taxpayers
They can not contain the relationship between customers and suppliers, taxpayers with non-existent tax identification number or taxpayers who have ceased activity in the period to which the tax.

5 electronic Mailbox
The taxpayer must notify the Tax Authority and Customs your electronic mailbox.

6 suspension of the deadline for IVA refunds
The repayment term is suspended when the taxpayer has not made available to the competent authorities the information requested and whenever there is evidence of tax crime.

News source : Ecomómico

Business and Professional Income

Business and Professional Income: choice of accounting organized by 31 March

The determination of business and professional income is made based on the application of the rules under the simplified scheme or on the basis of accounting.

They are covered by the simplified scheme, the taxable persons who, in the previous tax year, have not exceeded an annual gross amount of 200,000 euros this category.

However, taxpayers may opt for the determination of income on the basis of accounting. This option, by 2014, should be exercised in own activity early statement or until the end of March of the year who wanted to change the method of determining income by filing a change statement. Once exercised this option, it would be valid for a period of three years, renewable for equal periods, unless there is timely reporting the change of regime.

From January 1, 2015, changes have been made to the simplified scheme namely the repeal of the minimum term of stay in this regime and maintenance in the chosen regime until it provide a new option.
Thus, the simplified regime continues to apply by default, that is, if the conditions laid down in the Income Tax Code and not opting for the taxpayer of proper accounting regime will apply this system of determining taxable income.

However, the following year the taxpayer may reassess remains this scheme or opt for accounting. If you want to carry out such an option should deliver change statement by the end of March this year, allowing in practice the possibility of an annual review of the determination of the taxable income regime.

News source : Ecomómico

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