- Portugal’s tax authority amended the VAT reverse-charge rules for construction services under Circular-Letter No. 25117/2026, replacing the 2007 interpretation.
- From 1 July 2026, the reverse charge applies only if the contractor is legally authorized to perform construction activity and holds the required license/certificate as a public or private works contractor.
- The relevant authorization is issued by IMPIC, and its portal can be used to verify whether the service provider is properly licensed.
- The new interpretation applies only to services rendered from 1 July 2026; invoices issued before that date do not need correction.
Source: garrigues.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.
