- The proposal extends the reverse-charge mechanism for construction services to all taxable persons in Portugal, including those exempt from VAT.
- Currently, the reverse-charge applies only to recipients entitled to deduct VAT.
- The new rule would require only that the recipient is a taxable person established in Portugal.
- All acquisitions of construction services under works contracts or sub-contracts would be covered.
- Exempt or non-deducting taxable persons would now be responsible for self-assessing VAT.
Source: taxand.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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