- Portugal has introduced VAT Groups, allowing related entities to consolidate VAT reporting under a single group structure.
- The parent entity must own at least 75% of subsidiaries’ share capital and over 50% of voting rights; subsidiaries must share economic activity and be established in Portugal or meet equivalent EU/EEA requirements.
- The dominant entity handles consolidated VAT reporting and payment, but each entity must still file its own VAT return and pay individual liabilities.
- Detailed guidance on SAF-T and eInvoicing for VAT Groups is still pending from the Portuguese Tax Authority.
- VAT Groups offer administrative efficiencies, but businesses must ensure compliance with both group and individual entity obligations and monitor further regulatory updates.
Source: fintua.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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