Green receipts: Professional expenses can now be identified when issuing the invoice.
New measure will allow independent workers to identify expenses related to professional activity in invoice issuance.
Self-employed workers can assign expenses to the activity when issuing the invoice.
Self-employed workers will be able to indicate, at the time of invoicing, whether expenses are related to their professional activity. This change is part of a package of tax simplification measures approved by the Council of Ministers, as reported by Notícias ao Minuto.
So far, professionals with category B income need to manually classify their expenses in the Finance Portal, specifying whether they are professional or personal costs.
With the new measure, this identification can be done directly in the invoice issuance, avoiding the subsequent process of affecting the Tax and Customs Authority (AT) portal. The announcement was made by the Minister of Finance, Miranda Sarmento, during a press conference in Lisbon, accompanied by the Minister of Economy, Pedro Reis.
According to Miranda Sarmento, independent workers currently face a demanding bureaucratic process, spending "hundreds of hours" categorizing expenses. With this change, the identification of invoices will be simplified, although its practical implementation will still take some time.
The minister clarified that if an error occurs in the classification of the expense at the time of issuing the invoice, taxpayers will have the possibility to correct the information later on the Portal das Finanças.
Read more: Receipts: Find out if you can be exempt from withholding tax.
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