On 31 December 2020 Portugal published the State Budget Law for 2021 (Law No. 75-B/2020) in the Official Gazette. The following VAT measures were introduced and entered into force on 1 January 2021:
– the extension the VAT exemption scheme to taxpayers that among other conditions, have a turnover lower than 12 500 EUR in the previous four calendar years. In this context, for VAT purposes, such taxpayers will be treated as private consumers.
– The 6% reduced VAT rate introduced on supplies of protective masks and skin disinfectant gels (sanitizer) in response to COVID-19 is made permanent and the VAT exemption for intra-community supplies of goods necessary to combat the effects of the COVID-19 outbreak by the State and other public bodies or by non-profit organizations is extended to 30 April 2021.
In addition to the State Budget Law, Portugal has also published Regional Legislative Decree no. 18/2020/M, which approves the Budget of the Autonomous Region of Madeira for 2021.
Source Orbitax
