- Portugal is set to introduce a VAT grouping regime starting July 1, 2026, allowing closely linked companies to be treated as a single VAT taxpayer, simplifying compliance and eliminating VAT on intra-group transactions.
- Eligible companies must be established in Portugal, financially and organizationally linked, and led by a controlling entity, while public bodies and businesses under special VAT schemes will not qualify for the grouping.
- A designated group representative will handle VAT reporting, and members will report external transactions in a single VAT return, with further regulations expected to clarify administrative procedures and compliance requirements.
Source: marosavat.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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