Portugal Introduces VAT Group Return Model: New Compliance Framework Effective July 2026

Summary

• New VAT group return formalized: Portugal has approved the official declaration model for VAT groups, following the introduction of the VAT grouping regime under Law No. 62/2025.
• Centralized reporting by dominant entity: While each entity calculates VAT individually, the parent entity is responsible for confirming and submitting the consolidated group return.
• Applies from July 2026: The new declaration model becomes mandatory for tax periods starting on or after 1 July 2026, with returns pre-filled by the tax authority.

Source

• Communication Portuguese Tax Authorities
• Conceição Gamito

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See also

Portugal Introduces VAT Group Regime (RGIVA) – Effective 1 July 2026 – VATupdate

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Article

Portugal has taken a significant step in operationalizing its newly introduced VAT grouping regime by publishing Ordinance No. 244/2026/1 (1 June 2026), which formally approves the VAT group declaration model and completion instructions.

This measure follows the earlier adoption of VAT grouping rules under Law No. 62/2025, allowing eligible taxable persons—linked by financial, economic, and organizational ties—to form a VAT group. The key objective of this regime is to enable aggregation of VAT positions across group members, resulting in a single net VAT payable or refundable amount.

How the VAT Group Reporting Works

Under the framework, each entity within the VAT group continues to calculate its VAT position individually, based on its own periodic VAT return. However, these individual results are then consolidated at group level, with the dominant entity responsible for submitting a single group return.

Importantly, the Portuguese Tax Authority (Autoridade Tributária e Aduaneira) will pre-populate the group VAT return, based on the data already reported in the individual VAT returns of each group member.

The dominant entity must confirm this pre-filled return within the standard VAT filing deadline. If no confirmation is made, the return is automatically deemed submitted, reinforcing a compliance-by-default mechanism.

Structure of the VAT Group Return

The new declaration includes several structured sections:

• Identification of the dominant entity (NIF and name)
• Declaration details (tax year, period, and timeliness of submission)
• Detailed VAT computation per entity, including:
  • VAT payable to the State
  • VAT recoverable
  • Carryforward credits and limitations on their use
• Group-level consolidation, aggregating all individual positions into a single result
• Final settlement options, including payment, carryforward, or refund claims

A key technical feature is the controlled use of pre-group credits: historical VAT credits from entities entering the group can only be offset up to the VAT payable generated by that same entity, preventing cross-entity misuse of legacy credits.

Outcome of Group Calculation

At group level, the net VAT position determines the outcome:

• Positive balance → VAT payable to the State
• Negative balance → VAT recoverable, which can either be carried forward or refunded (subject to conditions, including timely filing).

Adjustments and Corrections

The regulation explicitly provides that any changes to individual VAT returns—whether initiated by the taxpayer or the tax authority—will trigger a corresponding adjustment of the group return.

Entry into Force

The ordinance entered into force on 2 June 2026, and applies to VAT group returns relating to tax periods starting on or after 1 July 2026.

External links

• Portuguese Official Gazette (Diário da República) – Ordinance No. 244/2026/1
• Portuguese Tax Authority (Autoridade Tributária e Aduaneira) – VAT Grouping Portal
• Law No. 62/2025 introducing VAT grouping regime in Portugal

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