Government solves the problem of food in the canteens in the IRS deductions – publico

 
         

                 

                         
                     

                 

 
 

The Government will review the system of deductions of education expenses the IRS to avoid situations of inequality found in the law, which currently leaves out, for example, spending on food in canteens of public schools. The Ministry of Finance said that the current rules revealed “a set of inequalities in the law that the government does not consider justifiable.”

The problems that result of the amendment to the IRS code in 2014 were detected during the settlement of last year’s tax and before that had led parents and guardians to complain before the Ombudsman.

the executive said he intended to change the regime in the State Budget for 2017 to be presented to Parliament in October, but did not specify any direction of this review. However, the Ombudsman had already alerted to the “ substantive unequal treatment on the IRS to pay for different households with the same kind of charges ” . It is that now the IRS code allows only be deducted as education expenses for accommodation, transportation and food (the children or students taxpayers themselves) if the entity issuing the invoice holds Economic Activity Code “Education”.

First, get out of education spending 23% VAT. Just count the costs exempt from VAT or VAT to 6%. But at the same time, it is necessary that the entity providing the service has that specific PPAs. Now, this difference makes this time get left out, for example, food expenses in the canteen of a school where this service is not provided by the school, which uses foreign or local company without CAE “Education”. Already in the case of a paid school and to provide the food service, even if he will not discriminated against on the receipt, the entire amount is deductible in the IRS as education spending.

as citizens detect this difference, complaints were coming to the Ombudsman, José de Faria Costa, who in May had already identified a set of unequal treatment between taxpayers. The provider then warned several differences comparing similar situations acavam to have different treatments: “Dependents who study in educational institutions to provide food services themselves, cumulatively or alternately, with the transport and therefore benefit from the deduction of such expenses in personal income tax, as opposed to families whose dependents do not enjoy the deduction because these services are not provided by the school. “

When complaints provider were submitted by parents, guardians and associations, and relate to the modified scheme in 2014 – eq ue reflected in 2015 income, whose statements were delivered this year. The IRS can be deducted 30% of education spending, up to a maximum of 800 euros.

The intention of the government to correct these situations comes the same day that began circulated a manifesto promoted by Deco Protest to deliver in Parliament – associated with a campaign of discounts for commercial purposes – to ask that the education expenses with school supplies also begin to tell the deductions. In this case, the current law does not provide for these costs, because it applies VAT to 23% and the rules exclude services taxed at the normal rate. This is not, however, one of the situations of “substantive inequality of treatment” for which the Ombudsman drew attention.