The failure of the inducement by Finanças in rebating a small percentage of VAT paid by consumers buying meals, accommodation, haircuts and car repairs has now been laid bare.
Last year just 6.6% of the 614.3 million invoices in the sectors covered by the scheme were issued with tax identification numbers added, the tax department therefore seems right to change the scheme for 2014 by adding the lottery incentive. As before, 15% of the VAT rate of purchases at restaurants, car garages and hair salons can go towards reducing a taxpayer's income tax if the receipt is registered online.
The natioon soon will have a lottery style car give away, but will the overall registration of receipts increase or are consumers on the side of the retailer and against the government’s increasing incursion into the nation’s business activities?