PORTUGAL: COVID-19 VAT IMPLICATIONS
PORTUGAL – Update 31st August
AT reimbursement regime – A long time claim by event organizers has been realized in Portugal.
The reimbursement of the totality of the VAT incurred in professional/commercial events has been a long-time claim by event organizer companies, along-side being pointed out as a competitive driver, compared to other EU countries. This measure, included in PEES (1), is a first step in that direction although refunds have the maximum limit of € 6 M.
All Event organizers with NACE code 82300 can now request the reimbursement of an amount equivalent to 50% of the non-deductible VAT included in expenses performed for the direct needs of participants of congress, fairs, exhibits and similar events, which have been directly contracted with legally able suppliers. This can bee done by electronic request filed in the Portuguese Tourism Institute website and up to 1 year following the date of issue of the supporting invoices/import declarations. Expenses must be incurred between 12 August 2020 and 31 December 2021.
Source Belim.pt, VATupdate.com
PORTUGAL – Update 20th July
Deadlines extended for VAT returns and payments for May, June 2020 and Q2 2020
On 24 June 2020, Portugal’s Secretary of State for Tax Affairs issued Order no. 229/2020 XXII to extend the deadlines for submitting the VAT returns for the May and June 2020 tax periods (under the monthly regime) to 17 July 2020 and 17 August 2020, respectively, from the 10th of those months.
The order also extends the deadlines for the payments due on those returns to 25 July 2020 and 25 August 2020, respectively, from the 15th of those months.
In addition, the order allows the VAT return for the second quarter of 2020 (under the quarterly regime) to be submitted until 22 August 2020 (instead of 15 August 2020) and the respective VAT payment to be made until 25 August 2020 (instead of 20 August 2020).
Source Credit – Deloitte
PORTUGAL – Update 7th July
Extension of the deadline for submission of the VAT Return and payment
The deadline for submission of the VAT return was extended as follows:
Monthly scheme: the VAT return for May 2020 may be submitted until July 17, and the return for June may be submitted until August 17.
Quarterly scheme: the VAT return corresponding to the period between April to June 2020 (2nd quarter) may be submitted until August 22, 2020.
Likewise, the deadline for payment of the assessed VAT has been extended for all the above cases, allowing for payments to be made up to July 25th for the May VAT Return and August 25th, for the June and second quarter VAT return.
This extension is without prejudice to the possibility of joining the applicable instalment payment scheme, stipulated in Articles 1 and 2 of Decree-Law No. 10-F/2020 of 26 March.
In addition, this ruling also makes it possible to calculate the tax on the basis of the data in the “e-invoice” system (e-Fatura) for the VAT returns relative to the months of February and March 2020 (monthly frequency) and the period from January to March 2020 (quarterly frequency), provided that the taxable persons:
i. Have not achieved a turnover exceeding EUR 10,000,000 for the year 2019; or
ii. Have started activity on or after January 1, 2020; or
iii. Have restarted the activity on or after January 1, 2020 and did not obtain turnover in 2019.
Finally, when it is necessary to regularise the situation, a replacement VAT return must be submitted (substituting the one previously submitted for February or March, or for the 1st quarter of 2020), without any additions or penalties, provided that this replacement and the payment/classification of the VAT assessed occurs until December 20, 2020.
Source Credit – pwc
PORTUGAL – Update 13rd May
VAT exemption and reduced VAT rates to health-related products on the IC supply and acquisition of goods
- VAT exemption for purchases made by the Portuguese state, other public entities or non-profit organizations and applies from 30 January to 31 July 2020
- reduced VAT rate (6% in mainland Portugal) on importation, intra-community supply and acquisition of respiratory protection masks and skin disinfectant gel from May 8 to December 31, 2020
Source Credit – Law 13/2020 – May 7, 2020
PORTUGAL – Update 12th May
Law published with VAT measure for the COVID-19
Source Credit – gov.pt
PORTUGAL – Update 17th April
The government has passed proposed easements into law including the option to pay VAT by instalments without incurring late payment penalties or interest.
Source Credit – Accordance VAT
PORTUGAL – Update 14th April
Mandatory B2G e-invoicing has been postponed to 1 January 2021 for large enterprises
Source Credit – DRE
PORTUGAL – Update 9th April
February monthly returns and associated payment delayed
February monthly returns, due on 10 April, are now due by 17 April. The associated payment is not now due until 20 April instead of the current 15 April. There will be no late filing penalties or payment interest charges.Update 31 March – the February monthly return may be delayed until 10 April 2020. This may be based on reported invoices on the Portuguese e-invoice platform without also submitting physical documents and reconciliations. No penalties and interest will be liable on this delay. This is only available for businesses below €10 million.
Portugal has announced a range of payment easements and other support for businesses.In the second quarter of 2020, VAT payments may be paid as follows by businesses with a turnover not exceeding €10 million per annum. This is an automatic option. For businesses with a turnover about this threshold, an application must be made for a delay. The scheme is available to monthly or quarterly taxpayers.
- Full payment;
- Three-monthly payments without interest charge; and
- Six-monthly payments, including late interest on the final three instalments.
Source Credit – Richard Asquith (Avalara)
PORTUGAL – update 9th April
Mandatory B2G e-invoicing has been postponed to 1 July 2021 for small and medium enterprises with the announced new measures against the pandemic
Source Credit – gov.pt
PORTUGAL – update 7th April
Measures on the payment of VAT and periodic VAT declarations
The payment of VAT (applicable to the normal monthly and quarterly regimes) and of withholding taxes on IRS and IRC , can be made: immediately or in a fractioned way in 3 or 6 monthly installments without interest by taxpayers with a volume of businesses up to 10 million euros, calculated in 2018, or which started their activity as of January 1, 2019 (article 1 and article 2 of Decree-Law no. 10-F / 2020 of 26 March ).For the remaining taxable persons, payment can be made in installments, if they have verified a decrease in the invoicing communicated through the e-invoice of at least 20% in the average of the three months preceding the month in which this obligation has to be fulfilled., compared to the same period last year. (Article 1 and Article 2 of Decree-Law No. 10-F / 2020 of 26 March )
These installment payments are exempt from presenting a guarantee. (Article 1 and Article 2 of Decree-Law No. 10-F / 2020 of March 26 )
The periodic VAT declarations , referring to the period of February 2020, to be delivered within the legal period provided for in no. 1 of article 41 of the CIVA, can be calculated based on the data contained in the E-Invoice, and the situation must be regularized by means of a replacement declaration provided that this replacement and the respective payment / settlement occurs during the month of July 2020, based on all supporting documentation, without any additions or penalties.
Simplification in the fulfillment of this declaratory obligation applies to taxable persons:
- with a turnover, up to 10 million euros, for the year 2019;
- who started the activity on or after January 2020; or yet
- who restarted their activity on or after that date and did not achieve turnover in 2019. ( Order No. 129/2020 – XXII – SEAF )
Source Credit – AT
PORTUGAL – Update 31st March
- Decree-Law No. 10-F/2020 was published, including:
- The flexibility of VAT payments and withholding tax on IRS and IRC, to be fulfilled in Q2 of 2020
- Deferred payment of contributions due by employers and self-employed persons
- The application to the ongoing benefit plans in the Tax and Customs Authority (TA) and social security (SS) of the regime provided for in Article 7(1) of Law No. 1-A/2020 of 19th March
- The suspension of tax enforcement proceedings initiated by the TA and the enforcement procedures for social security debts until 30th June 2020, if the regime approved in Article 7(1) of Law No. 1-A/2020 of 19 March ceases at an earlier date
Source Link here
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