VAT – VAT Groups

In brief

Law 62/2025 of 27 October, published in the Official Gazette, introduces the VAT group regime in Portugal by a mechanism that consolidates the VAT balances payable or recoverable by members of a group of entities.

In detail

A VAT group regime is being introduced, with entry into force scheduled for 1 July 2026.

This regime will allow groups of companies with financial, economic, and organizational links to submit a joint VAT return, consolidating the debit and credit balances of the entities within the group, resulting in a single net amount of VAT payable or refundable by the group as a whole.

Enrollment in the regime must be made by submitting a declaration of commencement or amendment of activity, and participation in the regime is mandatory for a minimum period of three years.

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