- Since January 1, 2026, companies in Portugal must determine and formalize their own VAT return periodicity; the tax authority no longer updates it automatically.
- The €650,000 turnover threshold in 2025 determines the regime: above this, monthly VAT returns are mandatory; below, quarterly is possible (with an option for monthly).
- The previous three-year commitment to the monthly regime has been removed, allowing annual changes based on turnover.
- Companies must actively monitor and declare any changes in VAT regime each January to remain compliant.
- Failure to act or declare changes can result in reporting risks; annual VAT audits are recommended.
Source: asd-int.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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