Portuguese Government Proposes VAT Exemption Expansion to Boost SME Competitiveness

• Portuguese Government proposing VAT exemption expansion for SMEs with organized accounting
• Aim is to align with EU directive for fiscal simplification and competitiveness
• SMEs with annual revenues up to 100,000 euros eligible for exemption
• Foreign companies meeting revenue threshold can also benefit in Portugal
• Changes to taxation of digital services to promote fair competition
• Proposal does not change VAT rates on essential goods
• Significant step for internationalization of SMEs and reducing tax burdens
• Parliament to discuss measure as part of 2025 State Budget with potential extensions and adjustments.

Source: valadascoriel.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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