The e-Fatura is the portal where invoices accumulate to determine a large part of your IRS (Imposto sobre o Rendimento de Pessoas Singulares - Personal Income Tax) deductions. Many taxpayers lose out on deductions simply by not validating invoices in time or in the correct category. See how to make the most of it.
Why e-Fatura is important
Every invoice with your NIF (Número de Identificação Fiscal - Tax Identification Number) is registered in the e-Fatura. Some are automatically classified, but others remain pending validation. Pending invoices do not count towards deductions until you confirm them.
The expense categories
Deductions are organised by categories: health, education, housing, care homes, general family expenses, and sectors that entitle you to IVA (Imposto sobre o Valor Acrescentado - Value Added Tax) deduction, such as restaurants, hairdressers, workshops, and veterinarians. Each category has its own limits.
How to validate
On the e-Fatura portal, consult the pending invoices and assign each one to the correct category. An improperly classified invoice may not be accepted or may fall into a category whose limit has already been exhausted, thus losing its effect.
Deadlines to respect
The validation of invoices from the previous year usually takes place in the first months of the following year, typically until mid-February. After this deadline, it is still possible to claim expenses at the time of filing your IRS, but it is more cumbersome.
Common errors
Leaving invoices unvalidated, classifying expenses in the wrong category, and not requesting an invoice with NIF for everyday consumption are the errors that most reduce deductions.
Self-employed professionals (activity abierta)
Those with an 'atividade aberta' (self-employment, literally 'open activity') must separate personal invoices from those related to their activity, because the tax treatment is different. Mixing the two can lead to problems.
At Grupo Your, we help you review and validate your expenses so that you can take advantage of all the deductions you are entitled to. Speak to us before the next IRS season.
