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Portugal will introduce VAT Groups from 1 July 2026, allowing related businesses to consolidate reporting under a single VAT number, exempting intra-group transactions and simplifying cash flow obligations.
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Joining a VAT Group is voluntary; businesses must be financially and/or organizationally linked, sharing management, voting rights, capital, or profits, ensuring compliance with EU VAT Directive rules.
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Intra-group transactions within the VAT Group are zero-rated, eliminating VAT cash flow requirements while making members jointly and severally liable for each other’s VAT obligations.
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One nominated group member will be responsible for submitting the consolidated VAT return, aligning Portugal’s VAT Group scheme with EU Directive 2006/112/EC and similar arrangements in other member states.
Source: vatcalc.com
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