Portugal passes new budget with VAT compliance changes

Portugal passed its 2013 Budget on the 31 December 2012.  This included a number of changes to the VAT compliance regime.  The principle changes include:

• VAT on bad debts may now be recovered subject to certain conditions.  For example, the debts must be at least six months old, and have factual evidence of impairment
• the above entitlement only applies to debts which fall due after 1 January 2013
• a 1-year extension on the VAT exemption for the transfer of immovable property
• the extension of the Portuguese VAT exemption on copyright
• changes to the proof of transport of goods for the purposes of evidencing movement of the goods into free circulation

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