Why you need to add VAT Number with Every Purchase in Lisbon? English Speaking Accountant

For expat entrepreneurs starting businesses in Lisbon, understanding and managing Portuguese tax obligations is essential. A key aspect is ensuring that your NIF (Número de Identificação Fiscal) also called your NIPC (Número de Identificação de Pessoa Colectiva) is included in all business purchases. This article highlights the importance of this practice and how it can impact your company’s financial health.

What is a NIF/NIPC?

The NIF is a unique tax identification number for individuals and businesses in Portugal. For companies, it is called the NIPC. You’ll also see this referred to as your VAT Number, and you may need to add the letter “PT” before your tax number when dealing with international companies.  Including this number on all business-related invoices and receipts is vital for deducting these expenses from your taxable income.

Consequences of Missing NIF/NIPC -

In Portugal, if you make a business purchase and your business VAT Number is not on the invoice, it cannot be deducted as a business expense.  Even if it’s incredibly obvious that it’s a business expense – for example, we had a client whose commercial office was rented out to the owner as an individual rather than to the company.  Even though it was a commercial space, and an obvious place of business, the lease payments could not be deducted until a new contract was signed in the name of the business.  

Missing VAT Numbers can have a huge impact to your bottom line, often adding up one small invoice at a time.  Don’t allow yourself to fall into this trap, and pay far more in taxes because of it.

Situations we Frequently See -

  • Online Software Subscriptions: International providers might not request a VAT number during registration. If they don’t, be sure to go to your billing settings to add your VAT Number so you can claim these expenses.
  • Large Equipment Purchases: A new business services client was excited to furnish their new office in Lisbon and purchased thousands of dollars in furniture and equipment without their NIF on the invoices. This is a common mistake!
  • Client Meetings at Restaurants and Cafes: People often feel uncomfortable asking a restaurant to add their NIF to the receipt due to the extra work involved. These expenses add up quickly though – every time you go, ask to add your NIF.

How Elevate Accounting Can Assist -

Elevate Accounting supports expat business owners in Lisbon with their bookkeeping and payroll needs. Our team of English-speaking accountants ensures that all your business expenses are documented correctly with your NIF/NIPC, helping you maximize deductions and improve your financial health.

Including your NIF/NIPC on every business purchase is essential for tax efficiency. Elevate Accounting provides expert guidance to ensure your business is financially optimized. Contact us today to learn more.

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