- Portuguese Tax and Customs Authority issued Circular No. 25061 on March 25
- Clarifies changes to cash accounting VAT regime under Decree-Law No. 34/2025
- Annual turnover threshold for cash accounting VAT regime increased to 2 million euros from 500,000 euros
- Taxpayers must notify tax authorities electronically if turnover exceeds 2 million euros during the year
- Taxpayers under general VAT regime can opt into cash accounting VAT regime in October each year
- Regime takes effect for taxpayers from January of the following year
- Changes take effect on July 1
Source: news.bloombergtax.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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