With the IVAucher programme, which launched on June 1, you may save up the VAT you’ve already spent on meals out, lodging, and cultural activities to use toward future purchases in those industries.
The government has planned a package of initiatives, including the IVAucher, to assist and boost consumption in these sectors, which include tourism, restaurants, and culture.
By using this approach, the VAT paid on lodging, dining, and cultural costs can be accumulated over the months of June, July, and August and then converted into savings on later purchases. There won’t be any value buildup in September, thus October, November, and December are the only months when the balance may be discounted.
However, it should be remembered that more than 50% of a new purchase cannot be covered by the accumulated VAT.
What is the IVAucher?
The proposed Portuguese State Budget for 2021 includes the IVAucher. The Portuguese will be able to collect the value of the VAT paid on specific costs and then apply a reduction to this amount on future purchases thanks to this temporary method.
The objective is to boost the economy, focusing on the industries most impacted by the pandemic: hospitality, dining, and culture. And the first day of June marked the beginning of IVAucher’s first phase. Additionally, there are a number of guidelines and measures to follow.
The “IVAucher” programme is governed by the Portuguese government.
The Portuguese government has finally defined the scope and operating requirements of the “IVAucher” programme, which was approved by the State Budget Law for 2021 and aims to support and stimulate the lodging, cultural, and restaurant sectors. This was done through Regulatory Decree No. 2-A/2021, which was issued on May 28.
For the purposes of this programme, only VAT taxpayers whose primary activity code (CAE) is one of those listed in the annex of the aforementioned Regulatory Decree are qualified.
Through this programme, end consumers (individuals) would be able to accumulate the VAT they paid on purchases made in the aforementioned sectors over a certain time and apply it to purchases made in the same sectors during a future period (quarter).
When paying using ATP/POS terminals, participation in this programme is automatic; if not, adhesion is required, which calls for paying with the token system.
The two phases of the programme, which is transitory, are as follows:
The Tax Authority will decide the credit phase based on the VAT that customers have paid and have reported in e-Fatura. This credit will be communicated in a special application that will be developed for this purpose. The credit will then be used by consumers.
The consumer may only use this advantage for up to 50% of the cost of the commodity or service in any one transaction, it should be mentioned. Additionally, it should be noted that this benefit cannot be added to any deductions for Personal Income Tax (IRS) that are due, nor can it be included in professional expenditures that are incurred and reported (individuals).
The IVAucher App: What Is It?
A technical option that allows taxpayers to sign up for the programme is the IVAucher App.
Taxpayers must link their NIF to one or more payment cards in the app. If it happens before the end of the year, the adhesion itself might happen at any moment.
What is the IVAucher Seal?
The Tax and Customs Authority will grant a seal to the businesses that profit from the scheme, like the Clean and Safe seal for tourism and indicating that the IVAucher programme is available there.
According to a decree made by the government, “establishments must identify themselves, openly and ideally at the entry, with a seal that shows that the establishment is qualified to utilise the IVAucher balance.
How can I become an IVAucher?
IVAucher membership is cost-free and cost-free. Taxpayers who intend to participate in the initiative must only request an invoice with a Tax Identification Number (NIF) during the first phase, which runs from June 1 through August 31. The credit will then be calculated based on the invoices that the taxpayers identify their NIF with.
Although payments can be made in cash or by card, you must use the cards connected with the account and only at participating stores to spend the accrued amount on purchases made in the three industries in issue.
The Tax Authority will estimate the total value of the cumulative IVAucher benefit during the second phase, which takes place in September, based on the reported invoices.
The cumulative benefit can be used by customers in any of the three sectors covered during the third phase, which runs from October 1 through December 31. Retailers will either enable customers to pay by communicating the NIF during this phase, or they will have an automated payment terminal (APT) for bank cards.