# Reclaiming IVA? Fact or pipedream?



## Colin Robinson (Jan 19, 2011)

Hi Everyone

_"A little knowledge is a dangerous thing...."_

We all know that's true but when you hear something that might just - possibly - be really, really good news, you have to try to find out more....!

A seemingly knowledgeable friend of mine recently told me that, by simply having a Fiscal number, ex-pats could reclaim a percentage of the IVA they paid out if they submitted receipts to their local tax office? He went on to say that although he didn't know how much you would get back, and admitted it would take a while to actually get the pennies, you could get SOME IVA back on shopping, petrol etc. and quite a bit, if not most of the IVA back on construction materials, fixtures and fittings and the like if you are renovating a house here in Portugal?

If you hadn't heard of this, I can almost see your eyes light up at the thought but if you are someone who is, or was, in the know, please share? IS this true? Is it really that simple? Is it just that they keep it very, very quiet? Or is it simply wishful thinking?

Thanks,

Colin


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## canoeman (Mar 3, 2011)

Afraid your friend has put his own twist on reality certainly not as extensive as he thinks

The Government introduced a scheme last year for certain categories to encourage buyers and suppliers to *not support* the black economy, providing a Resident expat or not is registered correctly and makes a IRS tax return then it is totally automatic, you must present your NIF number at time of service/purchase and ensure it is entered on bill/receipt/factura you then get a credit for a percentage of the IVA for that transaction, I receive an email each time I do this saying thank you and can check my "account" online to make certain suppliers enter details
Cats are, motor & motorcycle maintenance, hairdressing, meals, hotel accommodation, from memory

On same issue if you have your name or if self employed must be your NIF as well entered on Medical/pharmacy Receipts you can enter totals per person on IRs return and receive again an allowance against any tax liability. 

Believe him to be totally wrong on renovating unless its a commercial venture or you might be registered for IVA if as an example you have "holiday lets" you charge 6% IVA but can reclaim allowable IVA on expenses, renovation etc.


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## Colin Robinson (Jan 19, 2011)

Thank you Canoeman! I thought it unlikely that I would be given money for nothing!

At the moment, I pay taxes in the UK (as that is the country of my sole source of income) and am not yet resident, having only a Fiscal number but my friend was adamant that was all I needed....?

Oh well, worth asking and I appreciate your reply putting me straight!


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## canoeman (Mar 3, 2011)

Yes all you need is a Fiscal Number but as any entitlement is credited to your tax liability sort of eliminates Non Residents unless you filed a return like some do for various reasons


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## JohnBoy (Oct 25, 2009)

It seems that they have decided to continue the scheme this year and have even extended it.

In addition to the 15% of IVA paid being returned on the categories that you mentioned Canoeman there is also a prize draw, Every time that you buy something and pass over your fiscal number you will be entered into a regular prize draw. Here is a link to that information. What I cannot find at the moment is any reference to the fact that the prize draws are to be held monthly and the prize is a car.

We rarely gave the fiscal number at the point of sale last year choosing instead to update our record on the Financas website. Either way we have never received a 'thank you' email but have watched our payback amount steadily grow on the site over the year.

With this new scheme the number gets passed every time.


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## canoeman (Mar 3, 2011)

I'll look forward to receiving my new car?


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## JohnBoy (Oct 25, 2009)

canoeman said:


> I'll look forward to receiving my new car?


Get in the queue!


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## maidentales (Mar 29, 2010)

*Fiscal No*

We get asked for Fiscal numbers on purchases, usually anything to do with a home purchase such as buying lengths of wood, purchase for the garden, or a new internal door which I think Canoeman has clarified.

Interesting that Portugal wants to get away from any black market sales or purchases.

It can have a negative affect too, such as with car boot sales going awry.

How long is that queue ?


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## notlongnow (May 21, 2009)

> Believe him to be totally wrong on renovating


Agreed. There was some confusion on another forum as someone thought the scheme covered restorations, but if I remember rightly it was a language barrier thing and in fact meant restaurants. So unless you eat at the Vila Vita every night, you won't get much back!

It's a nice little half hearted attempt to clamp down on the grey economy, but the amounts involved really are tiny - you'd have to spend tens of thousands to get hundreds off your tax bill...


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## maidentales (Mar 29, 2010)

*Email from Financas*

Strangely this evening, I'm subscribed to receive emails from the Financas and this is a Google Translation of the email which is originally in Portuguese:

"Hon. (A) Lord (a),

The Revenue and Customs Authority (TA) will pass to be awarded, at regular intervals, substantial premiums to consumers who require the issuance of invoices on purchases of goods and services made ​​since since January 1 current value.

Where prompts you to insert your VAT number on the invoice, the draw is automatically enabled.

The implementation of e-lottery bill reinforces the important role that all citizens have to combat the underground economy and tax evasion.

You can get more information on the Portal of Finance (e-invoice draw).

Require invoice is always a right and a duty of citizenship.

Yours sincerely,

The Director General of AT

José Azevedo Pereira"


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## canoeman (Mar 3, 2011)

Nothing strange about it anyone on Financas email list would have got one across a few days, what's surprising is that they launched a prize draw starting 1st January and only now are emails going out.
No information on site as posted by Johnboy but the draw apparently from a blog I subscribe to says this morning the draw is for 
a) a weekly car
b) *any *invoice you have your NIF entered on *not *just the 4 cats you get 15% back on


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## JohnBoy (Oct 25, 2009)

Thanks for the confirmation about the car Canoeman though the weekly bit was a surprise. Why on earth don't they give it more publicity if they are really serious about clamping down on the black market economy?

In Jumbo I am always asked now for my NIF and even the self-service checkouts have a screen that you have to pass through asking for your NIF. In Continente it seems to be down to the individual operator whether you are asked or not and most don't bother to ask but are told by me anyway! Also there is no option at all that I can see at the self-service points.

So with one car a week there'll be plenty to go round for us all. Join the queue Maidentales.


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## JohnBoy (Oct 25, 2009)

So now the publicity has started for this scheme which takes off on 1st April. Basically for every €10 on an invoice where you have recorded your NIF you will be given one chance in the draw. So an invoice of €50 = 5 pops at the car. One draw every week for a car worth €40,000!

I'm not sure that I understand the thinking behind this scheme which is designed to generate extra income from IVA by killing off 'under the counter' sales where no IVA has been charged. But to generate an extra income sufficient to cover a forty grand car that means fresh invoices to the tune of €173,913! Really?


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## canoeman (Mar 3, 2011)

True but the 40,000€ car won't cost them that amount so that reduces your 173,913€ a tad, I understand that measures that have been put into place over the last few years have made a tremendous difference so maybe this is get the public on board more, me I'm off Monday to buy a new pressure washer so that's 40 tickets in the draw not that I would have dreamed of not paying IVA


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