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Portugal: VAT amendments adjust deadlines for payments, reporting

Portugal: VAT amendments adjust deadlines for payments

Tax legislation in Portugal includes changes to the value added tax (VAT) rules.

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Lei n.º 119/2019 includes changes to the schedule of due dates for remitting VAT—the new deadline is five days after the due date for submitting the VAT periodic declarations (this due date remains unchanged). Because of the VAT payment deadline amendment, remittances of VAT generally are to be made according to the following schedule:

  • For taxable persons on a monthly basis—by the 15th day of the second month following the month to which the VAT amounts relate (currently tax is payable by the 10th day of the second month following the month)
  • For taxable persons on a quarterly basis—by the 20th day of the second month following the calendar year quarter to which the VAT amounts relate (currently tax must be paid by the 15th day of the second month following the quarter)

The law also included changes to the due date for complying with requirements to submit certain information electronically to the tax authorities (in general, invoices pertaining to implementation of the VAT law). Effective 1 January 2020, taxable persons will be required to report certain required elements of invoices issued under the VAT law by the 12th day of the month following the date of the invoice.

Read an October 2019 report (Portuguese) prepared by the KPMG member firm in Portugal

Reminder of VAT-related invoice measures effective in 2020

VAT measures in Portugal also reflect new invoice rules and other provisions that are effective 1 January 2020.

Decreto-Lei n.º 28/2019 introduced rules aimed at simplification of the invoicing and archiving procedures, mainly in the context of documents issued by suppliers. The new provisions allow for:

  • Exemptions from paper invoices for non-taxable purchasers, provided that certain conditions are met
  • New invoice or documentation rules effective beginning 1 January 2020 in situations involving “legal persons,” non-profit entities, and certain other entities engaged exclusively in VAT-free transactions
  • The ability to scan and file electronically invoices and other relevant documents received from suppliers, as long as any future reproduction of these items allows for legible images of the originals, without loss of resolution and information
  • Requirements to notify the tax authority of the invoice system being used
  • A change to the due date for monthly reporting of invoices, with the new due date being the 10th day of the following month (with a transitional rule provided for monthly reporting of invoices)

Read a 2019 report (Portuguese) prepared by the KPMG member firm in Portugal

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