IVA and IRS deductions. Calculated by FIZ.

FIZ collects your purchase invoices from AT, the Portuguese Tax Authority, calculates the deductible IVA and, for the self-employed, shows how much personal expenses reduce your IRS.

For companies and self-employed professionals in any industry.

14 days free · No card, no contract

Papelaria
61.50 €IVA 11.50 €
Expense typeBusiness
Deductible IVA
11.50 €
Ótica
150.00 €
Expense typePersonal
Estimated IRS deduction150.00 € × 15%
22.50 €
Example with sample data

How FIZ calculates the deductions

  1. FIZ collects the invoices

    After you connect to AT, FIZ automatically collects the invoices with the NIF (tax number) of your company or self-employed activity.

  2. FIZ suggests the expense type

    It proposes the category. For the self-employed, it also suggests whether the expense is professional, personal or mixed use, and sends your choice to e‑Fatura.

  3. IVA and IRS worked out

    FIZ calculates the deductible IVA for the periodic declaration. For the self-employed, it also estimates the IRS deduction from personal expenses.

IVA deductions for companies and the self-employed

Under the normal IVA regime, you charge IVA to your customers and deduct the IVA you pay on business purchases. FIZ includes these deductions in the periodic declaration, the monthly or quarterly IVA declaration.

IVA is deductible when the purchase is used for sales and services that carry IVA or for customers abroad, and the invoice is in your name.

Cowork
246.00 €IVA 46.00 €
Expense typeBusiness
Deductible IVA
46.00 €

Normal IVA regime. The space is used only for business, so all the IVA is deductible.

Example: business expense

Mixed-use expenses

For a phone used 50% for work, only 50% of the IVA is deductible. As a self-employed person, you mark the invoice as “Partial” and enter the business-use percentage. FIZ calculates the deductible IVA for that share.

For the self-employed: expenses that reduce IRS

Part of what you spend on health, education and other personal expenses reduces annual IRS, the income tax, within limits. FIZ collects these expenses from e‑Fatura and shows how much they reduce your IRS.

Farmácia
80.00 €
Expense typePersonal
Estimated IRS deduction80.00 € × 15%
12.00 €

Health expense with reduced-rate IVA, not reimbursed by the national health service (SNS) or insurance. Estimate before annual limits.

Example: personal health expense

The declarations FIZ prepares

For your company

With FIZ Max, FIZ calculates IVA with the deductions and prepares the periodic declaration. The company’s certified accountant looks over the data and confirms with one click, and FIZ submits the declaration to AT.

IVA declaration for companies

For the self-employed

Under the normal IVA regime, on the Auto Pro and Prime Pro plans, FIZ calculates IVA with the deductions and prepares the periodic declaration. You confirm with one click, and FIZ submits it to AT.

IVA declaration for the self-employed

Annual IRS declaration

FIZ calculates your IRS with data from AT and, once you confirm, submits the declaration. It is a service separate from the plans. AT applies the personal e‑Fatura deductions.

IRS declaration

Choose a plan for your business

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Deduction calculations are included in the Auto, Prime, Auto Pro and Prime Pro plans for the self-employed and in FIZ Max for companies.

Frequently asked questions about deductible expenses

What happens to the deductible IVA on purchases?

It reduces the IVA payable in the periodic declaration. If it exceeds the IVA on sales, the excess is carried forward as an IVA credit to later periods. You can request a cash refund of this credit in the declaration when it exceeds 3,000 €, when it stays above 250 € for 12 months, or when you stop trading or switch to the IVA exemption (from 25 €).

How does an IVA deduction differ from a personal IRS deduction?

An IVA deduction applies to the IVA on business purchases and goes into the periodic IVA declaration. Personal IRS deductions, such as health and education, reduce income tax in the annual declaration. The two have different rules and limits.

How does the simplified IRS regime differ from the IVA exemption?

They are rules for different taxes. Under the simplified IRS regime, tax is charged only on a share of what you invoice, set by law: for example, 75% for professional services. With the Article 53 IVA exemption, you do not charge IVA on sales. You can be in the simplified IRS regime and the normal IVA regime at the same time, with periodic declarations and IVA deductions.

Do business expenses count under the simplified IRS regime?

Yes, for services with a 75% or 35% coefficient. To avoid paying more IRS than you need to, business expenses must reach 15% of what you invoice for those services. Business invoices on e‑Fatura, the rent for your business premises and the salaries you pay count, plus a fixed amount the law already allows for, or your Seg. Social contributions if they are higher.

If the total is below 15%, the difference is added to your taxable income. In the tax reserve, FIZ adds the fixed amount to your business invoices from e‑Fatura and shows how much is left to reach 15%.

Which document gives the right to deduct IVA?

A valid invoice issued to the company or self-employed person, with the NIF and the required details. The bank record shows the payment, and the invoice is the document that gives the right to deduct.

Which business expenses have limits on IVA deduction?

Passenger cars, fuel, meals, accommodation and hospitality expenses are excluded or partly deductible. For example, IVA on diesel for a passenger car is 50% deductible.

Which periodic declaration includes the IVA deduction?

In the declaration for the period when you receive the invoice or a later one, within 4 years. Under the IVA de caixa regime, where IVA follows payments rather than invoices, the date you pay the invoice counts.

What do categories and tags do for deductions?

They organise your expenses and show what you spend your money on. For the self-employed, the category also applies the share of IVA that the law allows you to deduct for that type of expense. For personal expenses, the e‑Fatura category, such as health or education, sets the IRS deduction.

Which pharmacy purchases count for the 15% IRS deduction?

Health expenses with 6% IVA or exempt from IVA, and purchases at 23% with a medical prescription. The part you paid counts, without the amount reimbursed by the SNS or insurance. The health limit is 1,000 € a year per household, within the overall limits.

How does IVA on purchases work with the Article 53 exemption?

With the Article 53 exemption, you do not charge IVA on sales, and the IVA on purchases stays a cost, with no deduction. For services bought from foreign suppliers under autoliquidação (the buyer declares the IVA instead of the supplier), the IVA is declared and paid in Portugal, with no deduction. Goods bought in other EU countries follow their own rules, linked to the yearly purchase amount.

As a self-employed person, can I submit declarations in FIZ without an accountant?

Yes, under the simplified IRS regime. FIZ prepares the periodic IVA declaration (Auto Pro and Prime Pro plans) and the annual IRS declaration (a separate service) and, once you confirm, submits them to AT. With contabilidade organizada (full accounts kept by a certified accountant), that accountant handles the declarations.

What does FIZ do, and what does the accountant do?

FIZ collects invoices from AT, calculates the deductions and prepares the periodic IVA declaration. The company’s bookkeeping stays in the certified accountant’s software: with FIZ Max, journal entries are exported to Excel for TOConline, Cegid Business, iziBizi or Sage.

Expenses: categories, projects and rules