With the average annual expenditure on school supplies in Portugal now at €200 per child, Deco highlights that currently only school supplies with 6 percent IVA can be deducted from taxes, in accordance with the law in force since 2015,.
"According to current law, only education expenses exempt from IVA or subject to IVA of 6 percent, such as tuition fees or tuition fees from educational establishments, books, tutoring services, and school supplies or food sold, can be deducted from the IRS. The remaining school material, subject to 23 percent IVA, such as notebooks, pencils, pens, computers, tablets, among others, is not tax deductible”, reads the statement from Deco.
The purpose of the appeal to deputies is that "the parties change the law during the preparation of the next State Budget and contemplate a deduction in the IRS of all expenses with school supplies and other services necessary for the education of children and young people".
Deco is asking the parliament to either end the limitation to deductions only to material with 6 percent IVA or to lower the rate of IVA on all school supplies to the minimum rate, ensuring that all expenses can be deducted.