Launching a business in Porto is an exciting opportunity for expat entrepreneurs. However, managing Portuguese bureaucracy is crucial to your business success. One essential task is ensuring that your NIF (Número de Identificação Fiscal) also called an NIPC (Número de Identificação de Pessoa Colectiva) is included on all business purchases. This article explains the importance and benefits of this practice.
The NIF is a unique tax identification number for individuals and businesses in Portugal. For companies, this number is referred to as the NIPC. Internationally, this number is typically referred to as your “VAT Number” and you will need to add “PT” prior to the NIPC number when entering it. Including your NIF/NIPC on all business-related invoices and receipts is crucial for deducting these expenses from your taxable income.
Omitting your NIF/NIPC on invoices makes it so that the purchase cannot be taken as a business expense. The Tax Authority in Portugal insists that every expense invoice must have the business’s NIPC in order for it to be a valid expense. By not having these expenses reduce your taxable income, you’ll pay far more in taxes than you would (or should have) otherwise.
Elevate Accounting works with expat business owners in Porto to provide clear and structured accounting support. Our English-speaking team is familiar with the common challenges international business owners may face when navigating Portuguese tax and financial systems. Our goal is to help make your accounting obligations easier to manage, with communication and tools that align with your business needs.
Contact us today for a free consultation, where we’ll discuss your business and how we can help.