Portugal Introduces VAT Grouping Regime Allowing Single VAT Return for Linked Companies

• Portugal has introduced a VAT grouping regime via Decree No. 62/2025.
• The regime allows closely linked companies to be treated as a single taxable entity for VAT purposes.
• Supplies between group members are disregarded for VAT, and a single VAT return can be filed for the group.
• To qualify, the controlling entity must hold at least 75% capital and over 50% voting rights in other group members.

Source: vitallaw.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.

---

---