Electronic rent receipts – 14 Questions and Answers

|| Part 1 of a 3-part series

The requirement to issue electronic rent receipts via the internet and the registration of rental contracts with Finanças have raised many doubts among landlords. Here are the answers to 14 key questions about electronic rent receipts and their application under the new legislation.

1/14: I have a house for rent. Do I have to issue electronic rent receipts via internet?
Yes, with two exceptions. Landlords are obliged to issue electronic rent receipts for income received or made available under Category F, even for security deposits or advances, if they have not opted for the taxation as a business activity in Category B. While this requirement came into effect in May of 2015, landlords may continue to use paper receipts until November without being subject to fines.

2/14: Who is exempt from issuing rent receipt electronically?
Landlords who opt for Category F may be exempt from issuing electronic rent receipts if:
a) In the previous year, they had annual rental income below €838.44 and, cumulatively, do not have an email address.
b) Alternatively, owners over 65 years old (as of December 31 in the preceding calendar year) are not required to issue electronic receipts.
It should be noted that, despite being exempt, they may still opt to declare electronically. Alternatively, they can have an intermediary report on their behalf.
3/14: What happens if I only start issuing electronic receipts as of November?
Although the ordinance took effect in May, the government has given more time for landlords to adapt to the new rules. Landlords can continue to issue paper rent receipts until November without paying fines. However, they must switch to the electronic version as of November 1. At that time, they must issue the electronic rent receipts for the months from January to October as well as the receipt for November.

4/14: Can I change an electronic rent receipt without having to alter the original contract registration itself or the Minimum Contract Elements?
Yes, prior to issuing the receipt, you can change some elements such as the amount of income, the period to which it relates, removal of a lessor or lessee in the event of multiple landlords or tenants in the contract.
5/14: I began renting after March 31, 2015 (after the decree law came into effect). How should I issue electronic rent receipts?
In this case, it is necessary to submit a declaration Modelo 2 to report the rental contract for settlement of Stamp Duty, which is subsequently registered into the AT (tax authority) database.
To issue electronic rent receipts, simply go to the Finanças website > Tax Services > Submit > Rent (here you enter your fiscal number and password) > Issue the Rent Receipt. On this page are listed all of the contracts registered to the landlord. Simply select the appropriate contract for which you wish to issue the electronic rent receipt.

This is the first article of a 3-part series

By Dennis Swing Greene
|| [email protected]

Dennis Swing Greene is Chairman and International Tax Consultant for euroFINESCO s.a.