Changes to Portugal’s VAT Refund Process Under Decree 52/2025

Scope of Amendments

The changes affect:

• Articles 4, 5, 7, 8, 10, 13, 16
• Entire Chapter III (Articles 18–23)
• Articles 25 and 26
• Repeal of Article 24 from RRIVA [pwc.pt], [pt.linkedin.com]

1. Strengthened Documentation Requirements

• Broader list of required supporting documents for VAT refund claims.
• New formats—documents must be signed, stamped, and submitted physically and electronically via platforms designated by the Tax Authority (e.g., institutional email, secure sharing systems). [pt.linkedin.com], [pwc.pt]

2. Streamlined Suspension Notifications

• Suspension notices must include:
  • Legal basis for suspension
  • Specific additional documentation needed
  • A mandatory 30-day deadline for response or clarification. [pt.linkedin.com], [pwc.pt]

3. Rejection Grounds Clarified

Refund applications may be denied if the applicant has tax debts or material irregularities equal to or exceeding the claimed refund amount. [pt.linkedin.com], [pwc.pt]

4. Special Regimes

A. Diplomatic Missions & International Organizations

• Claims must be filed within 3 months of the invoice date.
• Records must be retained for 2 years. [pt.linkedin.com], [pwc.pt]

B. Mining & Oil Sector Special Refund Scheme

• Replaces previous “regularization” regime with a dedicated VAT refund mechanism.
• Implements tacit approval: no reply within 90 days means approval; this decision period reduces to 60 days starting 2028 (or 12 months post-digital rollout). [pt.linkedin.com], [pwc.pt]
• Eligibility requirements:
  • Research/development projects need ≥ USD 25 million investment.
  • Production phase requires ≥ 60% of sales destined for export.
  • Claimants must not have had serious tax offenses in the past 3 fiscal years. [pt.linkedin.com], [pwc.pt]
• Requires annual registration with the tax authorities.
• Introduces a guarantee (caution) provision for high-risk cases.
• Refund decisions: tacit approval applies to both initial and appeal processes (claims, grace appeals, hierarchical appeals) if no decision is issued within defined deadlines. [pt.linkedin.com], [pwc.pt]

5. Fast-Track Refunds & Risk Controls

• For the mining/oil regime:
  • 60-day refund deadline (60 days post-2028 or digital transition).
  • Automatic tacit approval when deadlines pass.
  • Requirement to return erroneous refunds within 30 days after notification. [pt.linkedin.com], [pwc.pt]

Effective Date

All provisions take force on 29 January 2026, marking a more structured, efficient, and transparent VAT refund framework. [pwc.pt], [pt.linkedin.com]

These amendments reflect Portugal’s ongoing efforts to enhance tax compliance, reduce administrative burdens, and promote sector-specific efficiency—especially for strategic industries like mining and energy.