- A permanent establishment (PE) for VAT purposes requires permanence in Portugal, adequate human and technical resources, and operational autonomy.
- The structure must be able to receive, use, and autonomously perform contracted services in Portugal.
- Merely having a postal address or facilities without resources or a representative with decision-making power does not qualify as a PE.
- This is the first PTA ruling to clearly define PE for VAT, aligning with EU Regulation 282/2011 and CJEU case law.
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.
Latest Posts in "Portugal"
- Portugal Maintains 6% Reduced VAT Rate for Urban Rehabilitation, Construction, and Residential Leasing
- Portugal – Comprehensive VAT Guide (2026)
- Architects Demand 6% VAT for All Projects, Criticize Government’s Unequal Tax Policy
- Accountants Warn 6% VAT on Housing Construction Is Unworkable, Call for Retroactive Tax Exemption
- ECJ C-603/24 (Stellantis Portugal) – AG Opinion – VAT Adjustments in Intra-Group Transfer Pricing Not Separate Supplies
