Local authorities are currently evaluating the conditions of the client for the reverse charge to apply. Therefore, it needs further clarification but so far here are the two conditions for applying reverse charges:
1. The client should be registered for VAT purposes (which derives from the wording of the Portuguese VAT Code) or
2. The client is established and VAT registered in Portugal (which seems to result from the preamble of the decree-law which introduced the reverse charge rule into national law).
Source: globalvatcompliance.com
Latest Posts in "Portugal"
- Government to Propose 6% Construction VAT Cut in Parliament After 2026 Budget Approval
- Portugal Introduces VAT Grouping Regime Allowing Single VAT Return for Linked Companies
- EPPO Investigates Suspected €19 Million EU Subsidy Fraud and Ecological Damage in Portugal
- Portugal Plans 6% VAT on New Housing Construction, Major Impact Expected from 2027
- Portugal 2026 Budget: Extended VAT Reductions and E-Invoicing Deadlines Announced
