Do you know the importance of including the taxpayer identification number (NIF) on invoices? It ensures they count towards your income tax return and helps guarantee that taxes paid are returned to the state, according to the Tax and Customs Authority (AT).
“Why indicate the NIF on the invoice? Because every invoice counts! By providing your NIF on the invoice, you ensure that your expenses are included in IRS deductions and that taxes paid are returned to the state,” explained the AT in a post shared on the social media platform Facebook.
The Finance Authorities further explain that “it’s a simple gesture with a significant impact,” since it:
- Promotes tax justice
- Combats tax fraud and evasion
- Reflects your civic commitment
Who is required to issue invoices?
According to the site Saldo Positivo by Caixa Geral de Depósitos, “In Portugal, whenever a commercial transaction or service is provided by a self-employed worker, a sole proprietor, or a company, issuance of an invoice (simplified or invoice-receipt) is mandatory,” and “this issuance should occur regardless of whether the client requests it or not, as stipulated by the VAT Code.”
“Invoices must be communicated by merchants or service providers to the Tax Authority (AT) by the fifth business day following the moment tax is due, meaning when it is issued – in accordance with Article 36 of the VAT Code,” it further explains.
Additionally: “Failure to issue receipts or invoices, or doing so outside the legal deadlines, is subject to fines ranging between 300 and 3,750 euros. On the other hand, consumers not requesting the issuance of invoices or receipts is also punishable by law with fines ranging between 150 and 2,000 euros.”
How to check if invoices have been communicated to the AT?
According to the same site, “at the end of the following month after the issuance, you can verify your record in your personal area on the e-fatura Portal.”
Moreover, “if after this date you don’t find an invoice on the Portal, you can manually enter it in your personal area on the e-fatura.”
However, it’s important to know that “activities listed under Article 9 of the CIVA, such as doctors, psychologists, nurses, or tutors, for example, do not have to issue invoices.”
“In such cases, a receipt confirming payment by the client should be issued. Street sales, vending machine sales, transport tickets, and show tickets are also exempt from invoice issuance,” the same site indicates.
Can merchants refuse to issue invoices?
No: “Not issuing invoices is illegal and punishable by law. If a merchant or service provider refuses to issue an invoice, it means they may not declare the product sold or service rendered and thus neglect to pay the associated taxes,” explains Saldo Positivo.
Therefore, “if faced with this refusal, you can file a complaint in the merchant’s Complaints Book and should report the incident to the Tax Authority.”
