- Portugal approved a VAT group regime effective July 1, 2026, to improve companies’ cash flow.
- Intragroup transactions remain subject to VAT, but balances can be offset within the group.
- Eligibility mirrors corporate tax group rules: parent must hold at least 75% capital and over 50% voting rights for over a year, with common management and economic objectives.
- The regime is optional, must last at least three years, and covers entities under the standard VAT regime with monthly reporting; special/exempt regimes are excluded.
- Each company files its own VAT return, but information is consolidated; all group members are jointly liable for group debts, requiring strong internal controls.
Source: garrigues.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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