- New Portuguese legal instruments and interpretative documents impacting VAT were published in April 2025.
- Ordinance No. 191/2025/1 introduces a new cover sheet for the annual VAT return, effective from 17 April 2025.
- Annexes O and Q are no longer required for annual VAT returns from the 2024 reporting year onwards.
- Circular Letter No. 25065/2025 clarifies changes from Decree-Law No. 35/2025, introducing a special VAT exemption regime for small enterprises.
- The regime aims to harmonize exemption thresholds across EU member states and applies to cross-border operations.
- Circular Letter No. 25066/2025 provides guidance on amendments to the VAT Code and Decree-Law No. 28/2019 by Decree-Law No. 49/2025.
- The new VAT exemption regime applies to Portuguese businesses in other EU states and certain foreign businesses in Portugal.
Source: taxathand.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.
