A van specially adapted to transport those disabled or handicapped was donated by Rotarians in France to a registered charitable foundation in the Algarve.
The nine-seater van has a wheelchair lift platform at the rear and was destined to make lives easier in the Tavira area for those with disabilities such as Down’s Syndrome and other physical and mental handicaps as well as many less than mobile elderly.
The government’s support of the charitable sector is said to be strong with an appreciation that Portugal's voluntary organisations fill in many of the gaps left in government funded services which have been under severe financial pressure since the economic crash of 2008.
When it comes to really helping, rather than smiling and nodding, the government has failed to act or even to respond.
The vehicle donated from France, despite being destined wholly for charitable purposes, was assessed by the Customs Authority and taxes of €16,000 were deemed to be payable in green tax, VAT and customs duties.
The recipient Foundation appealed to the government for an exemption. No response was received but further advice from the Customs Authority concluded that the taxes on importation in fact could have been reduced dramatically if certain steps had been taken such as shipping the van on a trailer, rather than driving it down from France to the Algarve.
The tax demand total was questioned at length and the Customers Authority conceded that its earlier bill should be reduced by 50%, an amount that the recipient Foundation remains unable to afford, expecting that the transfer of a specialist vehicle used only for charitable purposes would be exempt from taxation.
Yes, the foundation should have worked out a way to get the specially adapted van here with zero tax but the Customs Authority equally has it in its power to exempt the vehicle from taxes as it is being used for the transport of disabled passengers as part of the Foundation’s remit to improve the educational and recreational opportunities available to the group.
The Foundation’s aims are “to support people with disabilities and incapacities and their families and other vulnerable groups in the prevention, care, rehabilitation, vocational training and social inclusion, with a view to promoting their quality of life.”
The Customs Authority won’t budge, the government won’t respond and the specially adapted vehicle can not legally be used until the Foundation comes up with €8,000 – money it does not have.
The warning is this. If you run a registered voluntary or charitable institution and are offered anything from outside the country, check first as import duties inevitably will apply whatever the benefit to the public and subsequent cost saving to the government.
The van from France sits idle and will either have to be sent back or the charitable foundation will need to reduce its services over time to pay the €8,000 import taxes.
