The Portuguese government has extended a series of measures to help offset rising energy prices. One of the main measures is a mechanism to refund increased VAT revenue collected on rising fuel prices, including gasoline and diesel. The refund is provided through a reduction in the Tax on Petroleum Products (Imposto Sobre Products Petroliferous – ISP) that is equivalent to the increased VAT on rising fuels prices, which is automatically determined on a weekly basis. First introduced in October 2021, the reduction mechanism has been extended until at least 30 June 2022. The government has also extended the suspension of carbon tax and the “autovoucher” subsidy for consumers. Click the following link for a government release on the measures.
Source Orbitax
Latest Posts in "Portugal"
- Government to Propose 6% Construction VAT Cut in Parliament After 2026 Budget Approval
- Portugal Introduces VAT Grouping Regime Allowing Single VAT Return for Linked Companies
- EPPO Investigates Suspected €19 Million EU Subsidy Fraud and Ecological Damage in Portugal
- Portugal Plans 6% VAT on New Housing Construction, Major Impact Expected from 2027
- Portugal 2026 Budget: Extended VAT Reductions and E-Invoicing Deadlines Announced
