Reduced VAT on renovations limited to 2022 onwards
The Order of Accountants (Ordem dos Contabilistas Certificados) has clarified that the reduced 6% value-added tax (Imposto sobre o Valor Acrescentado or IVA) for urban renovation works does not apply retroactively to periods before January 2022. This ruling settles the timeline for taxpayers seeking to benefit from the reduced rate on property improvements.
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.
