1. Country-Specific Features
  2. Portugal Help Topics
  3. Portugal-Specific SuiteApps
  4. Portugal Localization
  5. Setting Up for a Compliant PT SAF-T
  6. Entering a Portugal Tax Exemption Reason

Entering a Portugal Tax Exemption Reason

The tax exemption reason is a legal justification for a tax exemption. Each legal justification is represented by a code.

The tax exemption reason and code are required in the PT SAF-T for Billing file for tax codes that are Exempt and with a zero tax rate.

Important:

The Portugal Tax and Customs Authority requires that a tax exemption reason must be given to every zero tax rate. For this reason, you must ensure that no other tax code property (Normal, Intermediate, Nontaxable, Reduced) has a zero tax rate either on the tax code record or on a transaction when you associate an item with a tax code. The tax exemption reason will not be populated for non-exempt tax codes with zero tax rates, which then creates a discrepancy that results in a non-compliant SAF-T file.

You must select a tax exemption reason for all your tax codes that have a property of Exempt and with a zero tax rate.

To fill-in the Portugal tax exemption reason:

  1. Go to Setup > Accounting > Taxes > Tax Codes.

  2. Click Edit next to the tax code record that has a tax code property of Exempt.

  3. Verify that the Portugal Tax Code field displays Exempt and the tax rate is 0.00%.

  4. In the Portugal Tax Exemption Reason field, select the code that corresponds to the tax exemption reason.

    Note:

    There may also be a Tax Exemption Reason field on your tax code record. This field is installed by the International Tax Reports SuiteApp. Any entry in this field will not affect the PT SAF-T file of the Portugal Localization SuiteApp. Fill in only the Portugal Tax Exemption Reason field.

  5. Click Save.

Related Topics

General Notices