Portugal VAT rate and bad debts
- 9 November 2014 | Richard Asquith
The Portuguese VAT regime is being modified following the 2015 budget. The changes include:
- Exhibition fees are to be included in the base for the calculation of VAT of advertising services. This follows a recent ECJ ruling.
- The VAT exemptions on goods in circulation has been restricted to assets on only.
- The VAT exemption on medical and related health and cleaning services has been withdrawn. Such services will now be subject to the reduce VAT rate.
- The procedures for reversal of output VAT declared on subsequent bad debts has been modified. Companies claiming credits for such debts are now required to instruct their customer of the details of the invoices concerned, and pending legal actions and the tax amounts. Vendors must also inform the tax office where debts are sold as part of a factoring process.
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.