May

 The "IVAucher" Programme 

 Regulatory Decree No. 2-A/2021 of 28 May

 The regulatory decree defining the scope and operating conditions of the "IVAucher" programme, which will start on 1 June 2021, has been approved

 The "IVAucher" is a mechanism that allows consumers to accumulate the value corresponding to the total input VAT on consumption in the accommodation, culture and catering sectors, during a quarter, and to use this value, during the following quarter, by contributing to consumption in these same sectors.

This incentive programme will work in such a way that between 1 June and 31 August all VAT on consumption made in the sectors indicated in the table below will be accumulated. In September, the Tax Authority will calculate the accumulated balance and communicate it to the company that operates the IVAucher, Pagaqui, so that the consumer may benefit from the VAT discount in the months of October to December 2021.

Phases of the Programme

The "IVAucher" programme is temporary in nature, and is divided into two phases. The start and duration of each phase is defined by an Executive Order from the member of the Government responsible for the area of finance: 

a)     Determination of the amount of the benefit, which is based on the Value Added Tax (VAT) incurred by consumers at that stage, on purchases of goods and services from traders covered by the programme, supported by invoices issued and communicated to the Tax and Customs Authority (AT);

b)     Use by consumers of the amount established in the first stage, for purchases of goods and services from traders covered by the programme;

 Who can benefit from the programme?

Consumers are eligible to benefit from the programme if they are natural persons who adhere to the programme by accepting the respective adhesion terms with the system operator, or third parties authorised by it, and associate their Portuguese tax identification number (NIF) with a payment card eligible by the system operator.

For consumers who are VAT taxpayers or Individual Income Tax (IRS) category B taxpayers, the accumulation of the benefit depends on the classification by the consumer of the invoices and other fiscally relevant documents as being outside the scope of their professional activity, through the AT computer application or the Finance Portal

In other words, for service providers who include in the invoice classification that the invoice derives from their professional activity, they are no longer qualified to benefit from the benefit resulting from the present Implementing Decree.

How to join the IVAucher as a consumer?

At the stage of VAT accumulation it will be only necessary to request the invoice and provide your VAT number.

How can I join IVAucher as a trader?

Traders in the sectors of activity covered, as identified in the table below, can apply in person, at Pagaqui points of sale, or join online via the IVAucher website and the IVAucher mobile app. (which are still to be made available).

Who are the traders/sectors covered by the Programme?

Pursuant to Article 6 of the present Decree, you may benefit from the Programme when you use the services related to the professional sectors of activity, at the merchants who adhere to the Programme, as shown in the following table: 

How to participate?

Participation in the "IVAucher" programme by taxpayers operates: 

a)     Automatically and without the need for adherence, through the use of the Automatic Payment Terminals/Point of Sale (TPA/POS), whether they belong to the system operating entity, or are computer integrated through Application Programming Interface;

b)     Through acceptance of the respective adhesion terms, electronically, before the operating entity of the system in order to allow the use of the benefit to be made through payment by key (token) associated to a bank card, without APT/POS.

 For the purposes of the provisions of paragraph b) above, merchants may authorise, with express consent, the system operating entity to validate the name, TIN, registered office address, CAE and International Bank Account Number (IBAN) contained in the adhesion form with the AT.

How will the amount of the benefit be calculated?

The AT will calculate the amount of VAT borne by participating consumers on their purchases made from the entities mentioned in the previous table, by adding the VAT amounts on the invoices issued during the benefit accumulation phase, which are communicated to it by the taxable entities, under the terms of article 3 of Decree-Law 198/2012, of 24 August, in its current wording, less the VAT amount on cancelled invoices and credit notes issued.

VAT included in invoices with a VAT registration number (NIF), communicated through the reading of the two-dimensional code (QR Code) optionally affixed by the trader on the invoice, is also provisionally considered in the calculation of the amount of the benefit, without prejudice to the need for the AT to ensure the association between this invoice and the elements communicated by taxpayers under the terms of article 3 of Decree-Law 198/2012, of 24 August, in its current wording, for its consideration in the calculation of the amount of the benefit.

The amount of the provisional benefit calculated under the terms of the previous numbers shall be permanently updated until the end of the benefit accumulation phase and disclosed to consumers through the AT computer application or on the Finance Portal, in relation to invoices communicated to the AT.

The definitive amount of the benefit shall be calculated by the AT and disclosed to consumers through the AT computer application or on the Finance Portal, until the last day of the month following the end of the accumulation phase.

And what is the cumulative VAT in each sector?

The goods and services of each sector covered by the scheme have a different VAT rate, so in the case of accommodation, VAT on stays corresponds to 6% of the total value of the invoice; in the case of catering, VAT varies between a reduced rate of 6%, an intermediate rate of 13% and a maximum rate of 23% depending on the type of food and drink; and finally in the case of culture, VAT is 6% for most shows.

How will the benefit be used?

When the member consumer makes a payment, through a means of payment eligible by the system operator, for purchases of goods and services made to the taxpayers referred to in the table above, part of the amount of the payment is borne through the use of the benefit available, with the remainder being borne by the consumer's means of payment.

The part of the amount to be supported corresponds to 50% of the value of the good or service, except if the amount of the available benefit is not sufficient, in which case it shall not exceed this amount, that is, the maximum discount shall always be 50% of the value of the good or service to be acquired.

The operator of the system shall make available to the consumer, at the time of payment, information concerning the amount borne by the State and the amount of the benefit account, by printing this information on the receipt printed by the TPA/POS or equivalent.

The AT makes available in real time, in the AT application or in the Finance Portal, the amount of the benefit and respective movements.

Where to use the discount?

The discount will not be effected automatically, it depends on the voluntary adherence of the consumer who will have to use an interbank electronic clearing system. The company Pagaqui from the Saltpay group was the entity that won the tender at the Tax Authority to manage this process.

The consumer, entering the phase to benefit from the discount, will have to manifest his intention to adhere, so, when making the payment he should inform that he wants to adhere, pay with a bank card and provide his personal and bank details, only in this way will the values of the tax relative to each invoice be calculated and communicated to the AT.

The consumer, after joining, is ready to use the discount in the covered sectors, but will have to pay attention if the chosen merchant has also joined IVAucher.

What about the benefit accumulated and not used?

The amount of benefit that, under the terms of article 9, is used under this programme does not count towards the amount of deductions to the collection foreseen in articles 78-B and 78-F of the IRS Code.

The amount of accumulated benefit not used by the consume, regardless of the consumption sector, is considered for the purposes of deduction to the taxable amount provided for in article 78-F of the IRS Code.

Will the AT have access to my bank account?

According to information from the Ministry of Finance, there will be no exchange of information beyond the communication of the accumulated balance and the NIF.