- Portugal introduces a VAT group regime effective for tax periods starting on or after 1 July 2026.
- The regime allows consolidation of VAT balances within a group into a single VAT return by the dominant entity.
- Portuguese tax authorities issued a circular letter with detailed instructions and clarifications.
- VAT credits can be refunded or carried forward, but only at the request of the dominant entity.
- Credits remain with the group and can only be used or refunded by the group, even if the group dissolves or entities leave.
Source: taxathand.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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