- Reduced VAT rate applied to urban rehabilitation works in specific areas
- Prior to October 6, 2023, contracts in Urban Rehabilitation Areas could benefit without needing special approval
- Inconsistencies existed in national jurisprudence regarding this requirement
- Portuguese Tax Authority began raising the issue, leading to contradictory rulings
- Supreme Administrative Court ruled on March 26, 2025, that only areas with approved operations qualify for reduced VAT
- This decision may impact projects by requiring approved operations to benefit from reduced VAT rate
Source: taxand.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.
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