You have been asked certain times to include your receipt with your NIF number if you are living in Portugal. You can find out why it is important and what are the benefits of including your Portuguese NIF on receipts by reading this article.
Portuguese NIF number
It is a taxpayer identification number that is necessary for any kind of financial transaction in Portugal. You must have a NIF number even from getting a phone subscription to buy a property in this country. Innovate360 offers you a tailored online NIF service. We also have simplified the NIF acquisition process for you in Portugal.
Advantages of adding your NIF to receipts
It is a civic duty to ask about adding a receipt with your NIF. Asking for adding your NIF leads toward contribution in building a more sustainable economy in Portugal. It is helpful for the tax system in tracing the purchase and collection of taxes accordingly. By adding receipt with your NIF, it makes sure that the tax you are paying is contributing towards the financial stability of Portugal. Other than the benefits to the country, it is also advantageous for the taxpayer as well.
It serves the purpose of enabling the tax system in Portugal, which is helpful in the identification of your purchase, as a result it allows the deduction from your IRS.
You must link your tax identification number with the corresponding receipt to get the advantages of it.
Expenses that have additional benefits of NIF In a receipt
Some expenses guarantee bigger tax benefits if you ask for a receipt along with your NIF whenever you make a commercial transaction. The IRS deductible expenses can only be deducted if the receipt has been issued with your NIF.
Beauty services and hairdressing, car repair services and workshops, machinery services and monthly passes for public transport, hotel expenses, and restaurants have specific tax benefits. You must have a receipt with your NIF to get an advantage from these tax benefits available. It will be helpful for you to save money on your annual personal income tax return by subtracting a portion of these expenses as allowed by the Tax Authority of Portugal.
Some common concerns about receipt with NIF
It is true that the practice of including your receipt with NIF allows the State to control how much and where the citizens spend their money. After keeping information about your spending in Portugal, they compare what are you spending and what are you earning, detecting the discrepancies. Remember that the purpose of including your NIF in bills is to combat tax evasion, not to control your spending. Moreover, your bank is aware of your spending with the information recorded on your debit card and credit card.
What to do if a merchant does not add a NIF to a receipt?
No merchant can deny you for giving NIF to a receipt. It is your right to ask for a receipt with your NIF number as a citizen or resident of the country. Make sure to deny them when any merchant ask you for not giving the receipt with NIF.
