- Portugal’s Tax and Customs Authority issued Circular No. 25069 on May 19, providing guidance on VAT return simplification measures from Decree-Law No. 49/2025, effective July 1, 2025.
- Key clarifications include that taxpayers no longer have to maintain a minimum three-year commitment to monthly VAT returns, and the agency will not initiate changes to filing frequency except in specific legal circumstances.
- Taxpayers with a turnover of €650,000 or more in 2025 must continue monthly filings throughout 2026 and must submit a declaration by January 2026 to transition from quarterly to monthly filing if they exceed this threshold.
Source GlobalVATcompliance
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Other sources
- Portugal has introduced new VAT rules and guidelines for 2025
- Amendments include changes to VAT return filing frequency and turnover thresholds
- Circular No. 25069 allows more flexibility in filing frequency and sets a turnover threshold of EUR 650,000
- Decree No. 35/2025 incorporates the EU SME Scheme into national law
- Circular No. 25065 clarifies the application of the EU SME Scheme
- Ordinance No. 191/2025/1 introduces a new cover sheet for the annual VAT return
- Some rules are already in effect, while others will start on July 1, 2025
- Taxable persons in Portugal should review these changes to understand their impact
Source: vatabout.com
