With the arrival of September, many families take the opportunity to prepare the return to class. Between trips to the supermarket and visits to specialty stores, invoices that can later weigh in the family budget are accumulated. But not all these expenses will count on IRS as many taxpayers think.
The detail is in the tax framework. Certain purchases made at this time of year are treated only as family general expenses, even when they are directly linked to school.
The difference may surprise, especially when one realizes that the place of purchase and the way the invoice is issued have a direct impact on what may or may not be deducted.
Why are some purchases not count as education
According to the Finance Portal, only VAT exempt charges or subject to the reduced rate of 6%, as well as services provided by educational establishments, are accepted as education expenses. This includes tuition fees, school tuition, manuals and other support books.
Already articles usually associated with return to class, such as notebooks, pencils, backpacks, cases or pens, are not framed in this category.
Purchased in supermarkets or stationery, they are as a rule taxed at the normal rate of 23% and therefore are not considered didactic material. They end up classified as family general expenses, which have their own deduction but with different limits.
The importance of invoices in e-start
Asking for a taxpayer invoice remains fundamental, but it is not enough. According to the same source, it is necessary to confirm in the portal E-Factment the category in which the expense was registered. If it does not emerge as education, it will be in family general expenses.
The trader’s Code of Economic Activity helps the system to frame expenses, but does not change the nature of the product. In practical terms, even if a stationery is recorded in the area of education, it does not turn a backpack or a deductible expense notebook as education.
Not all school materials are ‘acceptance’
In practice, not all material purchased for class return can be included as an education expense. School books and manuals are accepted, but other articles even indispensable for students’ day-to-day life are left out and only tell family expenses.
According to this, this distinction results from the framework in VAT and the legal definition of what is considered specific school supplies.
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