- Law No 16 2025 amends the VAT Act
- Partially implements EU Directives 2020 285 and 2022 542
- Limits access to the regime to taxable persons not performing export operations with annual turnover under 15,000 euros
- Allows small businesses in other EU countries to claim the VAT exemption if their annual turnover within the EU doesn’t exceed 100,000 euros
- Establishes conditions for Portuguese businesses to apply the exemption in other EU countries
- Excludes occasional operations and transfers of new means of transport from the regime
- Establishes rules for waiver, exemption, ceasing conditions, and the deduction or refund of VAT
- Adapts the cash VAT and goods in circulation regimes to the special exemption regime
- Authorization granted by the law is valid for 180 days
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Portugal"
- Extension of Reverse-Charge Mechanism for Construction Services to All Taxable Persons in Portugal
- Partial VAT Refund for Individuals on Construction of Primary Residence up to EUR 660,982
- Reduced VAT Rate for Residential Construction and Rehabilitation: Conditions and Timeline Until 2032
- Portugal VAT Return Rules 2026: New Company Responsibilities and Turnover Thresholds Explained
- Portugal 2026: New VAT Declaration Rules Require Businesses to Self-Determine Filing Frequency
