Do you need to charge IVA? 

This description is a very simplified explanation of what needs to be considered by a self employed person or company and is not intended to cover every situation or problem relating to the subject of IVA.If you have turnover over 10,000 Euros in a year then you need to register for IVA and charge it on the goods and services that you sell.

 

There are 3 current rates of IVA (2017) depending on the product/service, 23% , 13% and 6%.

 

Depending on the size of your business you can submit VAT monthly or quarterly. Whicher one it is it must be paid on time and the declation must go to the tax authorities by the 20th of the month folowing the tax period.

 

Anyone who do not submit periodic VAT declarations or do not tell the appropriate department that they have ceased to trade will pay more IVA. The annual State Budget sets the minimum level of VAT for those people not making regular declarations. The measure aims to encourage voluntary VAT declarations. The minimum limits for settlement vary between €1,455 and €2,910, depending on the turnover of the company or individual.

 

The rules also cover other areas such as non-compliance with declaring the closure of a business. This means that if a company stops its activity, without the correct notification to the authorities, it may well be requested to make a series of VAT payments, automatically created by the Treasury. As we know, finance and official regulation regarding taxes in Portugal can be a minefield.

 

If you are in any doubt as to what to do or what you have to pay it is always best practice to consult a professional for advice, either an accountant (contabilista) or tax specialist in Portugal. Hey Portugal Business Directory