Changes to the reporting of letting income

Share experience regarding ownership of property and/or living in Portugal.
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RichardHenshall
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Re: Changes to the reporting of letting income

Post by RichardHenshall »

I wonder if your PT accountant means that you can only ask for a repayment to your bank after 12 months of being in credit but meanwhile each VAT return still contributes to a running total that is owed by you or to you. Naturally the VATman isn't going to want to pay out if he thinks that he might be asking for it back again soon after.

It's good news if apportionment for Portuguese VAT isn't deemed necessary.
widge
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Re: Changes to the reporting of letting income

Post by widge »

LICY wrote:RichardH, whilst I have not got a clue of all the ins and outs of the Portuguese IVA as the accountant deals with this and we send everything to him with IVA, he has not asked us how long we spend in the villa, it is only our UKaccountant that has.

I am therefore assuming the Portuguese end we get all IVA, however it will be dependent on the IVA in and out. This is what our accountant said when I asked about quarters we paid out more IVA than we took in. "We can only claim the VAT back, if we have credit for at least 12 consecutive months, our when it higher then € 3.0000." Hope this helps.
Agreed, this is also my understanding and experience. IVA returns are made quarterly declaring output tax on sales and deducting input tax on allowable expenses backed up by facturas. If the credit balance owing exceeds €3000 or 12 months have elapsed since you first went into credit then you claim the refund. No account is taken of your own time spent in the property as far as i know.
LICY
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Re: Changes to the reporting of letting income

Post by LICY »

widge wrote:
LICY wrote:RichardH, whilst I have not got a clue of all the ins and outs of the Portuguese IVA as the accountant deals with this and we send everything to him with IVA, he has not asked us how long we spend in the villa, it is only our UKaccountant that has.

I am therefore assuming the Portuguese end we get all IVA, however it will be dependent on the IVA in and out. This is what our accountant said when I asked about quarters we paid out more IVA than we took in. "We can only claim the VAT back, if we have credit for at least 12 consecutive months, our when it higher then € 3.0000." Hope this helps.
Agreed, this is also my understanding and experience. IVA returns are made quarterly declaring output tax on sales and deducting input tax on allowable expenses backed up by facturas. If the credit balance owing exceeds €3000 or 12 months have elapsed since you first went into credit then you claim the refund. No account is taken of your own time spent in the property as far as i know.
Thanks Widge. Not sure if the way I explained sounded right. Each quarter as Widge says you pay your IVA. Often our Accountant says nothing is owing. The rental income charges 6% IVA. This is the only IVA we have to charge, everything else we are asking back, such as Internet, electric, water etc that carries IVA. If any bills are in my name we cannot claim the IVA. We found this out as I am the only one with a MAKRO account. You can also ask for IVA back on building services, cleaning materials etc., so long as you have original receipts/facturas. I cannot claim for anything paid in the UK, such as when I puchase linen etc. you have a max if 6 weeks St the end of the quarter to pay what you owe. This is rigid.
brandy
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Re: Changes to the reporting of letting income

Post by brandy »

Cook Family wrote:Yes - it turns out that QdP are reporting rental visitors on our behalf. We had to ask Sovereign for clarification first though!
can you tell me if QDP are charging you for this service ?
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