VAT – Taxpayers covered by the Automatic VAT Return

In brief

Ordinance 242/2025/1, dated 29 May, published in the Official Gazette, defines the scope of taxpayers covered by the Automatic VAT Return, which will come into force on 1 July 2025. 

In detail

Taxpayers eligible for the Automatic VAT Return must cumulatively satisfy the following conditions:

a) They must be tax residents in Portugal;

b) They must not be registered under the VAT Cash Accounting Scheme;

c) They must have classified all invoices and rectifying documents in which they are identified as purchasers.

However, even if these requirements are met, taxpayers involved in certain activities—such as imports and exports—are excluded from the Automatic VAT Return.

Additionally, invoices that have been manually registered by purchasers in the e-fatura system will also be excluded from automatic processing. 

^{© 2025 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.}