When Will I Be Able to Confirm My Personal Income Tax (IRS) Invoices?

Please note that you have until the 26^th of February 2024, to complete the validation process for all invoices. This is the final deadline for verifying, entering, and reviewing all the necessary data in the online e-fatura system. It is imperative that you ensure all steps are accurately completed before the deadline to benefit from the deduction of expenses in personal income tax (IRS).

It is crucial to follow this specific process to ensure that taxpayers can take advantage of their eligible expense deductions across various sectors such as health, education, housing, nursing homes, and general family expenses. By adhering to this process, individuals can maximise their deductions.

The taxpayer can partially recover the Value Added Tax (VAT) in Portugal. Nevertheless, it is important to note that this recovery is only applicable for expenses directly related to specific services, such as lodging, restaurants, automobile shops, hairdressers/barbers, beauty clinics, gyms, and veterinary services. On the other hand, the VAT paid for newspaper and magazine subscriptions, public transportation tickets, and monthly passes has a total recovery for the taxpayer.

It is essential to understand the significance of invoice validation. The process plays a vital role in ensuring that the expenses declared by taxpayers are accurately categorized and comply with the regulations set by the Portuguese Tributary and Customs Authority. In case of any uncertainty about the category of an expense, the authority places it in the pendent sector until the taxpayer confirms the bill. However, if the taxpayer fails to confirm the bill by the end date, which is the 26th of February, the expense doesn't count as a tax deduction and is automatically excluded from the personal income tax (IRS) deduction process. This can result in the taxpayer losing money if they do not adhere to the process.

Confirming invoices is a crucial yet time-consuming process that requires one-by-one confirmation of each invoice. In cases where you have children, it is imperative to register their expenses and link them to their NIF (Número de Identificação Fiscal). This step is essential for recording their expenses in the e-fatura system, which is the only way to ensure that all expenses are accurately registered.

If you have any further questions or require assistance on this matter or related issues, please feel free to reach out. We will be delighted to assist you.