# IVA increase



## travelling-man (Jun 17, 2011)

I'm not sure if I understood it right but if I did, it looks like IVA is due to go UP to 25 or 26% 

That'll be bad news for all of us but especially for those who are building or rebuilding etc!

Hopefully, my barn renovation will be finished before the increase kicks in!


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## AidanMcK (Nov 21, 2011)

> but especially for those who are building or rebuilding etc


Why is that then? Prices of materials all going up, or labour prices going up, or both?


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## oronero (Aug 24, 2012)

travelling-man said:


> I'm not sure if I understood it right but if I did, it looks like IVA is due to go UP to 25 or 26%
> 
> That'll be bad news for all of us but especially for those who are building or rebuilding etc!
> 
> Hopefully, my barn renovation will be finished before the increase kicks in!


OUCH!!!! 

Luckily I will be exporting most of my products, perhaps I should consider keeping an English company whilst also having a Portuguese one!


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## travelling-man (Jun 17, 2011)

Aiden

IVA = VAT so the increase will apply to labour, materials and pretty much everything else you buy.


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## canoeman (Mar 3, 2011)

Not heard anything official, wheres info from? 

aidan with building works and most things IVA is normally an addition so it's at the current rate at time of invoice, purchase, material costs, transport. fuel etc will all increase 

Ononero look at this link General overview - European commission but you should take detailed advice from an accountant with feet in both countries as having a UK company/earings will cause you a tax/VAT issue in UK & Portugal


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## oronero (Aug 24, 2012)

canoeman said:


> Not heard anything official, wheres info from?
> 
> 
> 
> Ononero look at this link General overview - European commission but you should take detailed advice from an accountant with feet in both countries as having a UK company/earings will cause you a tax/VAT issue in UK & Portugal


Hi *Canoeman,* the UK still allow companies that turn over under a certain amount exemption from VAT and the rate in the UK is still currently 20%.

So even if I was over the exemption in my UK business affairs it would still allow me to retail product in Europe at cheaper rate than if bought from a solely Portuguese business, this is especially of significance if the end user is unable to claim the IVA/VAT element back.

I agree that I do need to talk to somebody in Portugal of my intentions prior to starting anything there.


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## canoeman (Mar 3, 2011)

Portugal turnover +10,000€ you must register for IVA, no difference to rules on charging, not charging, reclaiming etc but I think the importance is not consulting accountants from each country *but a accountant who knows and understands how both countries tax, IVA laws will affect you*


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## travelling-man (Jun 17, 2011)

CM

I heard it on the PT news today but wasn't sure I'd understood correctly & then 2 different Portuguese friends told me the same thing this afternoon. 

I'm not 110% sure if it's definite or just a proposal but will be buying some materials etc sooner than I expected just in case.......


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## canoeman (Mar 3, 2011)

I think currently a proposal but one of the Troika's suggestions i.e. do it if you want more money


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## travelling-man (Jun 17, 2011)

I can't think of a more ridiculous idea........ 23% is slowing business & an increase will choke it!


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## JohnBoy (Oct 25, 2009)

And what I heard was that as the latest round foo austerity measures were passed in Parliament a couple of days ago, the President may now refer some or all to the Constitutional Court. If they agree with the President and throw out the new measures then the Finance Minister is threatening to raise IVA to 24% instead.

I'm sure that the truth is somewhere among all the variations on the theme!


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