Portuguese Finance Bill new VAT measures
- 9 November 2013 | Richard Asquith
The latest Finance Bill has presented a range of changes to the Portuguese VAT regime, and should come into effect on 1 January 2014.
The new Portugal VAT compliance changes include
- tax payers will now have the option to forgo the VAT exemption on property services in order to reclaim all or a proportion of any input VAT suffered
- removal of the requirement for VAT invoices on financial services or insurance services to EU VAT registered businesses
- Allowance for the deduction of input VAT immediately after receipt of the input invoice
- A new VAT recovery scheme for public bodies
- A range of goods will be excluded from the Regime de Bens em Ciruclacao. These will include agricultural goods, publicly collected waste, goods for non-for-profit of pubic organizations
- Clarification of the documentary requirements for international transport and intra-community supplies, including: GDN and invoices
- Details on the irrecoverability of VAT on bad debts, including a 2-year limit
Implementation of the 2015 EU VAT Package
In addition to the above compliance meausre, the new Bill provides for the inclusion of the new rules on the place of supply to consumers of electronic services, downloads, telecoms services etc.