VAT – Transposition of Council Directive adopting new rules on VAT in e-commerce


In brief

Law 47/2020 of 24 August,published in the Official Gazette, transposes Articles 2 and 3 of Council Directive (EU) 2017/2455 of 5 December 2017 and Council Directive (EU) 2019/1995 of 21 November 2019, amending the VAT Code, the Regime for Intra-Community Transactions (" Regime do IVA nas Transações Intracomunitárias" or RITI) and supplementary legislation in connection with the treatment of electronic commerce.

In detail

The alterations introduced by this diploma focus essentially on the following:

  • Adoption of new VAT rules on e-commerce, amending certain obligations related to supplies of services, distance sales of goods and certain supplies of goods;
  • Amendment to Decree-Law No 31/89 of 25 January 1989 exempting imports of certain goods from VAT;
  • Approval of special arrangements for taxable persons supplying services to non-taxable persons, making distance sales and certain local sales;
  • Revocation of the special VAT arrangement for taxable persons not established in the Member State of consumption or not established in the European Union who provide telecommunications, broadcasting and electronic services to non-taxable persons established or domiciled in the European Union, published as an annex to Decree-Law No. 158/2014, of 24 October, as amended by Law 71/2018, of 31 December.

This law enters into force on 1 January 2021.

The diploma also republishes the RITI as amended by this law (RITI was approved and included in an annex to Decree-Law 290/92, of 28 December).

2020 PwC. This communication is of an informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific situation or circumstance. PricewaterhouseCoopers Tax Services TLS, Lda. We will not accept any responsibility arising from reliance on information hereby transmitted, which is not intended to be a substitute for specific professional business advice.

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Rosa Areias

Rosa Areias

Tax Lead Partner, Membro da Comissão Executiva, PwC Portugal

Tel: +351 225 433 101

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Susana Claro

Indirect Tax and Tax Technology Partner, PwC Portugal

Tel: +351 213 599 625

Hugo  Salgueirinho Maia

Hugo Salgueirinho Maia

Indirect Tax Partner, PwC Portugal

Tel: +351 225 433 135

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