- A new VAT group scheme law allows economic groups with multiple companies to consolidate VAT balances if they are financially, economically, and organizationally linked.
- The law is effective immediately but applies to tax periods starting July 1, 2026.
- Eligibility requires the dominant entity to hold at least 75% of capital and over 50% of voting rights in other group entities for more than a year, with all entities based in the country and under the normal VAT system.
- The dominant entity opts the group into the regime, and all group members are included; each company still submits its own VAT declaration, which is consolidated at the group level.
- The law was approved by parliament on October 17, 2025, with support from PSD, CDS-PP, Chega, and IL, and was promulgated by the President the same day.
Source: portugalpulse.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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