Yes, it is possible to transfer tax credits. Find out what it consists of and what you must do to grant credit to third parties. NãoSejasPato is a space where we seek, every week, to answer questions from the consumer society and current issues, which has a partnership with Portal da Queixa by Consumers Trust.
Taxpayers who wish to transfer their IRS, IRC and VAT credits to third parties can do so directly on the Tax and Customs Authority website, through the Finance Portal. To do this, they must use the functionality available in the Citizen > Services > Credit Assignment option.
This option is part of a set of initiatives that the Tax Authority has been developing to make the payment of refunds faster and safer. If you want to grant a tax credit to third parties, find out how to proceed.
Who can grant a tax credit to third parties?
Taxpayers who have their tax situation regularized and have a tax credit – because, for example, they do not have a valid IBAN registered with the Tax Authority – can transfer this credit to another person.
Transfer requests can even be made prior to the supposed refund, such as, for example, when submitting the IRS declaration. If you verify that the settlement simulation indicates a refund, you can immediately request submission through the IRS declaration and register the request to transfer that credit.
In this sense, you can grant credit for the purposes of:
- IRS;
- IRC;
- VAT;
- For another reason, regardless of whether the credit holder has a valid IBAN on file.
In the case of VAT, you can request the credit to be transferred and issued in favor of a third party – for example, a family member or friend – if the tax situation is regularized and in certain situations, such as having a credit suspended due to not having a Valid IBAN at registration.
It is important to emphasize that the person to whom the tax credit will be granted must have registered a valid and current European Union/European Economic Area IBAN. Credits that can be assigned are those awaiting processing or those previously identified by you before the credit is issued.
How to submit credit?
To submit the transfer of a tax credit, you must access the Finance Portal. Once authenticated, using your taxpayer number and password, you will immediately access the Transfer Request page.
A list of possible credits awaiting processing is presented.
- You must select the credit you wish to grant.
- You must indicate the tax number (TIN) of the person to whom you wish to grant the credit.
- If you want to grant a credit that is not on the list, you must choose the option Other Requestsindicating the Origin, Period and Tax Number for Assignment.
- Finish the operation with Place Order.
Furthermore, bear in mind that, if the credit corresponds to an aggregate, the validation of the request depends on the authentication of both taxpayers.
How do I know if the credit grant has been validated?
According to the information provided by the Tax and Customs Authority, the compensation request can be consulted in detail, on the Finance Portal, in Citizens > Services > Assignment of Tax Credits – Manage Assignment Request, by:
- Active Orders;
- Authorized Orders;
- Cancelled/Rejected Orders.
The request is considered to be submitted successfully after confirmation of acceptance of the assignment by the assignee. If you want to cancel, be aware that only orders pending acceptance can be canceled in Citizens > Services > Tax Credit Assignment – Manage Assignment Request. Within the Finance Portal, for this purpose, select the Active Requests tab.
Criteria for accepting credit
The transfer of credits can only be carried out to those who have a valid and current IBAN in the Tax Authority’s database. If the taxpayer does not have a valid IBAN, they will be notified by the Tax Authority to change it.
The person to whom the credit was transferred will receive an email from the Tax Authority alerting them to the need to accept the transfer of credit, if they have a valid email address.
Finally, you must also take into account that tax credits transferred to third parties cannot be applied to their potential tax debts. However, beneficiaries may choose to do so if they so choose.
NãoSejasPato is a space where we seek, every week, to answer questions from the consumer society and current issues, which has a partnership with Portal da Queixa by Consumers Trust
