- The retroactive correction of VAT from 6% to 23% on urban rehabilitation projects could cause significant financial harm to real estate developers, potentially leading to a “third mass extinction event” for construction companies.
- The Tax Authority’s restrictive interpretation of VAT law, supported by a court ruling, creates uncertainty and may ultimately be challenged in the Constitutional Court.
- Carlos Lobo criticizes the government’s new housing tax incentives as insufficient, arguing that the reduced 6% VAT rate should apply to all housing, not just those below certain price thresholds.
- He questions the implementation of the new law, particularly the definition of “procedural initiative” and suggests a simpler system where the reduced VAT applies to all expenses after a set date, based on invoice dates.
Source: jornaldenegocios.pt
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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