New tax measures approved – December 2022

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The Portuguese Government approved, on December 21st, 2022, (Decree-Law 85/2022 of December 21st) a new legislative pack of tax corporate compliance measures.

This pack of tax measures introduces changes to both VAT and CIT provisions.

Concerning VAT, new exceptions shall apply to producers and sellers of renewable electricity in the self-consumption regime. The reverse charge mechanism will apply to those who acquire electricity produced under the self-consumption regime with a power limit equal to or less than 1 MW. In that case, invoices will be issued by the purchaser. This regime will apply until December 31st of, 2026. This measure intends to reduce tax evasion and exempt a reasonable number of small producers from a VAT assessment obligation.

Also, regarding VAT, the payment in instalments will be extended during 2023.

A new measure translates into the possibility of refunding 50% of the VAT incurred and not deducted for taxable persons whose main economic activity is organizing fairs, congresses, and other similar events.

The obligation to submit the IES and the SAF-T file will again be postponed. The pre-submission of the SAF-T file will be optional for the automatic filling of annexes A, and I of the IES forms until 2024 (with submission in 2025).

The Government also approved flexibilization measures to facilitate companies’ tax compliance. Cooperatives, micro, small and medium-sized companies, or small-mid cap companies, are allowed to waive half of the 3rd payment on account of Corporate Income Tax (due on December 15th of each year).


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