The Portuguese government will launch special draws in March offering cars to taxpayers who ask for their NIF (tax identification number) to be included on any invoices for items they have purchased.
The aim is to hone in on tax evasion as if the invoices contain the NIF, they then have to be reported to the tax authorities.
These tax ‘carrots’ will work as “extra incentives” to the benefits already attributed to those who ask for their NIF to be included in restaurant, hotel, car repair or beauty treatment invoices.
However, company tax identification numbers will not be eligible for the draws.
Nonetheless, the government hopes the plan will encourage more people to ask for their NIF on invoices as last year only 6% of the total of 611.8 million invoices that were handed over to authorities contained a tax identification number.
Also, the new car draw will be open to all sectors of the economy – including supermarkets and clothes stores. Theoretically, even a €0.60 coffee would be eligible. And as before, 15% of the VAT rate of purchases at restaurants, car garages and beauty parlours will go towards reducing a taxpayer’s individual income tax (IRS).
The first draw is expected to take place in March and involve invoices from the first week of January, the Secretary of State of Tax Affairs Paulo Núncio told Dinheiro Vivo.
Media reports are suggesting that the government is planning to make the draw a weekly event and that more prizes may be added along the way.
From what news sources have ascertained, the cars given away in the draws will be vehicles that have been seized by the authorities and removed from previous owners for various tax misdemeanours.
