Portugal – COVID 19: Deferral of VAT obligations

The Portuguese Government approved changes to the exceptional and temporary regime for compliance with tax obligations, within the context of the COVID -19 disease pandemic, through Decree-Law 103-A/2020 of December 15^th. We highlight the following measures:

Monthly VAT regime

• In the first half of 2021, the obligation to deliver the VAT assessed [Article 27(1)(a) of the VAT Code] due by taxable persons who obtained a turnover of up to EUR 2,000,000 in 2019, or who commenced or recommenced activity on or after 1 January 2020, may be fulfilled:

a. Until the end of the period for voluntary payment; or

b. In three or six monthly installments, of an amount equal to or greater than EUR 25, without interest.

In this case, the taxable persons must also declare and demonstrate a decrease in invoicing reported through the e-billing (e-fatura) of at least 25% in the monthly average of the full calendar year 2020 compared to the same period of the previous year.

The demonstration of the decrease in invoicing must be made by certified accountant certification or if they do not have organized accounting, the certified accountant certification may be replaced, upon the applicant’s declaration, under commitment of honor.

Quarterly VAT regime

• In the first half of 2021, the obligation to deliver the VAT assessed [Article 27(1)(b) of the VAT Code] can be met:

a. Until the end of the period for voluntary payment; or

b. In three or six monthly installments, of an amount equal to or greater than EUR 25.00, without interest.

This Decree-Law enters into force the day after its publication, i.e., today (December 16^th).