- Portugal will implement automatic VAT returns for domestic taxpayers starting July 2025.
- The system aims to reduce compliance burdens, improve accuracy, and simplify the filing process.
- Automatic VAT returns are available only to resident businesses in Portugal.
- Pre-filled VAT returns are draft declarations generated using existing data from businesses and third parties.
- Businesses can review, correct, or confirm the pre-filled information before submission.
- The system is based on Article 29-A of the Portuguese VAT Code.
- Taxpayers can confirm and submit the draft or make necessary changes.
- If no transactions occur and no different return is submitted, the provisional return is automatically considered submitted.
- The feature will be accessible through the e-fatura portal and other tax tools.
- The new rules apply to resident Portuguese businesses not under the cash accounting scheme and with correctly classified invoices in e-fatura.
- Businesses engaged in imports, exports, reverse charge purchases, or special VAT schemes are excluded from automatic VAT returns.
- Manually registered invoices and credit notes not previously communicated by the issuer are not included for deduction purposes.
Source: marosavat.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.
