Budget 2022: Extension VAT reduced rates and extension compliance deadlines

Portugal’s 2022 Budget (Bill 4/XV/1) was approved in a final vote in parliament on 27 May 2022. The budget bill, presented in April 2022, is largely in line with the prior bill submitted in October 2021, which was rejected and required resubmission following government elections.

• Certain EU Directives for VAT purposes are transposed
• The reduced VAT rate of 6% (5% in Madeira and 4% in the Azores) is extended for dairy-free products similar to cheese, made from nuts, cereals, fruits, or vegetables; repair services for domestic appliances; delivery and installation of thermal and photovoltaic solar panels (expires on 30 June 2025); and
• VAT and related compliance deadlines are amended
  • monthly and quarterly VAT returns are due by the 20th of the second month following respectively monthly or quarterly period (previously 10th for monthly and 15th for quarterly);
  • monthly and quarterly VAT payments are due by the 25th of the second month following respectively monthly or quarterly period (previously 15th for monthly and 20th for quarterly); and
  • the electronic communication of invoices (SAF-T) required of taxpayers subject to VAT must be submitted on a monthly basis by the 5th day of the following month (previously the 10th day).

Source Orbitax

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