Latest news and stories about vat in Portugal for expats and residents.
PS secretary-general José Luís Carneiro has proposed a series of tax relief measures, including zero VAT on essential food and a reduction to 13% on fuel, to combat the rising cost of living and mitigate the economic impacts of ongoing global conflicts.
Chega plans to propose the reinstatement of zero VAT on essential goods, a measure they aim to limit until the end of the year. Additionally, the party is advocating for further government action to reduce fuel taxes.
From 1 January 2026 the amendment to the VAT periodicity regime shifts the onus from the Tax and Customs Authority to the taxpayer: rather than receiving an official reclassification, taxpayers must now submit a formal declaration to request a change of periodicity. The declaration should identify the taxpayer (tax identification number and contact details), state the current and requested VAT periodicity classification, give the intended effective date and the legal or factual reasons for the change (for example a change in turnover, accounting regime or business structure), and attach any supporting documents required by the Authority.
In practice the declaration is normally submitted electronically via the Authority’s online portal and must be signed with the appropriate digital signature or authentication method. Before filing, reconcile turnover figures and previous VAT returns so the requested periodicity is consistent with statutory thresholds; indicate whether the change is temporary or permanent; and keep a copy of the submission receipt. Late, incomplete or absent declarations can lead to the Authority maintaining the previous classification, administrative penalties or cash‑flow disruption from an unexpected reporting frequency. For most taxpayers — and especially for expats or businesses undergoing structural change — it is advisable to consult an accountant or tax adviser to check eligibility, prepare supporting evidence and confirm the correct form fields and deadlines on the Authority’s website.
EContas outlines the key tax and reporting obligations due in January so businesses and households stay compliant with the Tax and Customs Authority (AT) and Social Security (SS). Important January items include the Day 9 electronic communications for IRS (personal income tax), IRC (corporation tax) and VAT, SAF‑T invoicing requirements, VAT returns and payments, and related Social Security filings — all with strict deadlines and penalties for late or incorrect submissions. Use the EContas checklist to prioritise filings, confirm filing channels (electronic transmission), and avoid sanctions.
“There is nothing left to clarify.” This is how the president of the Recuperar Portugal mission structure ends the controversy surrounding the billing of the Test Beds. The tax authorities warned these consortia that grants must be subject to VAT. However, the change has caused confusion, acknowledged by the National Agency itself...
Companies in the Test Beds consortia have lacked defined rules for billing services and settling VAT for a year, which is delaying incentive payments and the execution level of this Recovery and Resilience Plan (PRR) programme, which ends in June. The uncertainties...
Donations raised within the scope of a public petition are not subject to VAT, provided there is no associated consideration and they do not fall under an economic activity of the beneficiary. This position is stated in a binding information issued by the Tax and Customs Authority (AT) on March 31, 2026, and published on the Finance portal this Monday.
A man working in an appliance store told CMTV that consumers are taking precautions and buying before prices rise even further.
The document asks the Government to adopt 15 temporary measures to alleviate the cost of living following the effects of the war in the Middle East.
Every month, companies and families must fulfil a set of tax and reporting obligations to the Tax and Customs Authority (AT) and Social Security. EContas prepares a monthly summary so you do not get lost among the numerous responsibilities. The deadlines are as follows: April 8th SAF-T...
Portugal’s finance minister, Joaquim Miranda Sarmento, has dismissed the possibility of reducing IVA (VAT) on certain food products to help families through the current economic crisis, saying it would be The post Lowering IVA on essential foods? Still a ‘no’ from government appeared first on Portugal Resident.
Joaquim Miranda Sarmento, during a parliamentary hearing, also rejected claims that the State is gaining tax revenue from VAT following the rise in diesel and petrol prices.
The issue of tax relief was raised by Chega MP Eduardo Teixeira.
This Tuesday also marks the deadline for taxpayers to indicate on the Finance Portal which entity they wish to consign a portion of their IRS and the VAT they would receive from invoice requests.
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...
Analysis suggests that the zero VAT policy is ineffective, even when applied to essential food items.
Luís Montenegro was speaking at the end of the weekly Council of Ministers meeting.
The Secretary of State for Fiscal Affairs, Cláudia Reis Duarte, admitted on Tuesday in Lisbon that the reduction in VAT to 6% on the construction of housing for sale or The post 6% VAT on housing limited by EU’s legal framework appeared first on Portugal Resident.
Pedro Vaz (PS) says the Government should prevent price hikes. Hugo Patrício Oliveira (PSD) says the executive makes decisions in line 'with reality'. Meanwhile, Bernardo Pessanha (Chega) calls for a VAT exemption.
Secretary of State for Tax Affairs, Cláudia Reis Duarte, says that, because of this, it is “not a possibility”
The government official explained that the European legal framework “only allows for a reduced VAT rate on construction within the scope of social housing policies.”
The Secretary of State for Tax Affairs says that the reduction of VAT to 6% for housing construction is naturally conditioned by the EU legal framework.
The Secretary of State for Tax Affairs, Cláudia Reis Duarte, admitted this Tuesday in Lisbon that the reduction of VAT to 6% on the construction of housing for sale or rent is naturally conditioned by the European legal framework. The official explained that the European legal framework only allows for a reduced VAT rate to be established for construction.
Customers and vendors at the fruit market in Caldas da Rainha fear that the situation will worsen. A customer suggests that lowering the VAT on products could be a government measure to minimise the daily impact.
The chairwoman of Sonae, which closed last year with record sales of over 11 billion euros, argued this Thursday for the adoption of measures similar to those implemented in 2022, at the start of the war in Ukraine, to cushion the impact of rising prices for consumers. “Zero VAT obviously...”
Economist Filipe Grilo considers that applying Zero VAT would be “ineffective” as a response to the impacts of the conflict in the Middle East. Conversely, he highlights the solidarity gas cylinder measure as positive. “It is more targeted, cheaper, and reaches the people who need it most.”
The 6% VAT rate on construction is set to expire in 2029. Pinto Luz states that the measure will be re-evaluated that year and admits the possibility of its extension. Regarding rent subsidies, he claims that the issues have been resolved.
Available evidence suggests that the most effective social protection policies in the food sector are those that increase food supply or directly support the most vulnerable groups.
Fuel prices are rising, putting pressure on the entire supply chain. Members of Parliament Rui Afonso (Chega), Miguel Costa Matos (PS) and Inês Sousa Real (PAN) advocate for the return of 0% VAT.
The introduction of the Value Added Tax, commonly known as VAT, was an essential condition for integration into the common market, implying the replacement of the existing transaction tax with a general consumption tax harmonised according to the European model. Directive 77/388/EEC (Sixth VAT Directive) was transposed into Portuguese law through Decree-Law...
