Portuguese tax authorities extend automatic VAT calculation to more payers in 2020

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More tax payers will have their VAT automatically calculated in 2020 and will include tax deductible VAT.

It means that the tax authorities will press ahead with widening the number of tax payers who have their VAT declaration forms calculated automatically as well as deductions based on receipts and invoices communicated via the tax authority’s portal.
The broadening of automatic VAT was announced on Tuesday by the Director General of the Tax and Customs Authority (AT), Helena Borges, at the opening of the VAT Congress 2019 held in Lisbon and organised for the project Cátolica Tax by the Faculty of Law at the Universidade Católica in partnership with various law offices.
“In the first phase we’ll be pre-filling out the VAT declaration with the VAT liquidated. Now we’ll also include VAT deductible” said Borges at the conference.
This new phase will continue to include tax payers within the quarterly VAT and without organised accounting.
The director general of taxes that the goal of tax administrations was to help citizens and create the conditions that they would not run the risk of default. “If they request invoices with tax numbers (NIF) and do direct debits, we only have to see if the invoices correspond or not to VAT tax deductible in order for them not to face non-compliance,” she said.
This also falls within the context of broadening VAT payments via direct debit. Helena Borges did not mention when this application — which is already available for IMI, IUS and IRS taxes would be available but said “watch this space”.