- VAT on plug-in hybrid vehicles is deductible if used for business purposes.
- Deductibility is based on Portuguese VAT Code, article 21(2)(f).
- Private or non-business use requires VAT adjustment based on actual kilometers driven.
- The ruling aligns with previous guidance in Circular Letter No. 25088.
Source: taxathand.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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