Order no. 122/2020-XXII of 24 March 2020, issued by the State Secretary for Tax Affairs
It was recently published Order no. 122/2020-XXII of 24 March 2020, issued by the State Secretary for Tax Affairs, establishing that during the national emergency situation related with the COVID-19 pandemic, the exemption applicable to free of charge supplies of goods made to the State, to private social security institutions and to non-governmental non profit organizations, for later distribution to people in need, maintains in force even if those goods remain in the ownership of the aforementioned entities.
With this regard, it is also clarified that people receiving health care in the current pandemic context, who are considered victims of catastrophe, are considered people in need.
The aforementioned exemption grants the right of input VAT recovery [cf. Article 20 (1) (b) (IV) of the VAT Code].
© 2020 KPMG PORTUGAL – S.G.P.S., S.A., a Portuguese company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.