-
Portugal will introduce VAT Groups from 1 July 2026, allowing related businesses to consolidate reporting under a single VAT number, exempting intra-group transactions and simplifying cash flow obligations.
-
Joining a VAT Group is voluntary; businesses must be financially and/or organizationally linked, sharing management, voting rights, capital, or profits, ensuring compliance with EU VAT Directive rules.
-
Intra-group transactions within the VAT Group are zero-rated, eliminating VAT cash flow requirements while making members jointly and severally liable for each other’s VAT obligations.
-
One nominated group member will be responsible for submitting the consolidated VAT return, aligning Portugal’s VAT Group scheme with EU Directive 2006/112/EC and similar arrangements in other member states.
Source: vatcalc.com
Latest Posts in "Portugal"
- VAT rate reduction from 23% to 6% for construction of homes intended to be rented for residence purposes
- Portugal’s 2026 Budget Slashes VAT for Agriculture, Art, Game Meat, and Extends Key Exemptions
- Portuguese Tax Authority Clarifies VAT Permanent Establishment Criteria and Requirements
- Portugal Introduces VAT Group Regime for Companies Effective July 2026
- Portugal Postpones E-Invoicing and SAF-T Reporting Rules Until 2026 and 2028
