Intermunicipal communities (CIM) are prevented from applying the reduced VAT rate to construction contracts associated with projects classified as being of national public interest. This is the understanding of the Tax and Customs Authority (AT), as stated in a recent binding ruling published on the Finance Portal, which reinforces a restrictive interpretation of the tax rules applicable to...
Intermunicipal communities prevented from benefiting from reduced VAT on works of national public interest
Monday, 30 March 2026RSS
Context & Explainers
VAT is Value Added Tax (Imposto sobre o Valor Acrescentado), a consumption tax charged at each stage of production and sale; the standard mainland rate in Portugal is 23%. Parliamentary proposals to cut VAT on bottled gas from 23% to 6% would directly reduce consumer prices if approved.
