UTAO: Increased tax revenues to March was very expressive – Jornal de Negócios – Portugal

Tax revenue “evolved unfavorably” by March and, if adjusted for refunds of indirect taxes, recorded an annual increase “less than impressive”, according to the Technical Unit of Budget Support (UTAO).

In the synthesis of budget execution of the first quarter, the Lusa agency had access Wednesday, the UTAO back to warn that the growth of net tax revenue (considering reimbursements of indirect taxes ) grew 4.8% by March, yoy, but that “in gross terms, the evolution was different, verifying some significant annual increase.”

“Indirect tax refunds checked up to March 2015 were lower than in the same period by about EUR 319 million, including the level of VAT [Value Added Tax], implying an increase in tax revenue in net terms much higher than in gross terms ” write the independent experts who support the parliament.

The UTAO explains the reduction of about 25% of refunds on VAT thirst with the entry into force of new requirements for granting VAT refunds, ” including going to depend on the electronic communication of all invoices issued during the repayment period or in previous periods and the absence of differences between reported values ​​and the declared values ​​of paid and tax deductible. “

The technicians consider that “overcome difficulties” registered at the level of verification issued and communicated bills, it is assumed “that VAT refunds could accelerate in the coming months, approaching the values ​​recorded in previous years.”

The Business Journal wrote on Tuesday that VAT refunds (value added tax) are being automatically suspended if it is detected discrepancies between the information in the system e-invoice and on applications for reimbursement and that, in these cases, companies are not reimbursed, even if the responsibility for non-communication is not his, but from suppliers.

Finance Ministry source told Lusa that electronic communication bills for the system and -factura “it is mandatory for all companies since 2013,” and it is necessary to “guarantee the right of each individual taxpayer to deduct from taxable income on IRS with regard to the expenditure” and to “secure the payment due from VAT and IRC by companies” .

The same source noted that in January, the emission control obligation and communication bills and control of bond measures were approved for VAT and that “not only the risk matrix use by the tax authorities to confirm the validity of claims for VAT refunds has changed significantly, as they came to be because of suspension of repayments. “

This means that, according to the trust, what motivates this suspension of VAT refunds is “the existence of differences between the values ​​of reported invoices and the declared values ​​of paid and tax deductible for each company.”