Algarve beach businesses beware - the taxman is watching you

albufeirabeachThe Tax Authority and the Maritime Police are cooperating in a clamp down on illegal, beach-related tax evasion in the Algarve.

The “pé na areia” (foot in the sand) operation aims to ‘monitor summer activities,’ according to the latest press release, to deter those operating in and near the region’s beaches without the necessary paperwork.

By the end of the bathing season, the Tax Authority and the Maritime Police will have monitored everyone they can get hold of to check they are complying with legislation, reporting their income and paying tax.

According to Finanças, the operation will run until the end of the bathing season and focuses on activities related to summertime beach tourism "including recreational activities, sports, massage, selling stuff and maritime tourism activities."

The goal "is to control activity by operators and their compliance with invoicing obligations."

"The presence of the Tax and Customs Inspectorate on the ground is essential to detect, deter and penalise cases of willful misconduct," the statement added.

"With the promotion of a deterrent and the educational of taxpayers, the Tax Authority helps to increase the risk and the costs associated with non-compliance."

Sunbathing cutomers purchasing for example a cold coke, or donut from an itinerant beach vendor should ask for a receipt and give their fiscal number to ensure compliance law.