COVID-19 – VAT and Social Security: Postponement of deadlines for payment

23/11/20

In brief

Decree Law no. 99/2020, of 22 November, approves an extraordinary regime postponing the deadlines to comply with tax and social security obligations arising in November and December of 2020.


In detail

Decree Law 99/2020, of 22 November, approves an extraordinary regime postponing the deadlines to comply with tax and social security obligations arising in November and December of 2020.

 

I – VAT

Deferral of VAT due in November 2020 for taxable persons classified as micro, small and medium-sized enterprises, under the quarterly VAT regime:

  • Payment until 30 November; or
  • Payment in 3 or 6 monthly instalments, amounting to €25 or higher:
    • Upon electronic request submitted within the deadline to voluntary payment, no interest due or need to present a guarantee;
    • The first instalment should be paid within the legal deadline foreseen;
    • The following instalments should be paid in the next months, within the legal deadline foreseen;
  • This measure applies to taxpayers:
    • classified as micro, small and medium-sized enterprises in accordance with article 2 of the annex to Decree-Law 372/2007, of 6 November; certification by statutory auditor or certified accountant is required; or
    • that have restarted their activity on or after 1 January 2019 and had no turnover in 2018.

 

II – Social Security contributions

Deferral of social security contributions due in November and December 2020

  • The payments of the social security contributions related to November and December 2020, due by self-employed workers or private and social employers can be made in 3 or 6 monthly equal and successive instalments, starting in July 2021, without any interest being due;
  • This measure applied to:
    • Self-employed workers;
    • Private and social employers that qualifies as micro, small or medium-sized enterprises, depending on the number of employees they have, which should be, respectively:

§  Less than 10 employees;

§  Between 10 and 49 employees;

§  Between 50 and 249 employees.

  • The deferral of the employers ‘social security contributions only covers the employer share of the contributions.
  • It is not necessary to file a request to have access to this measure; however, in February 2021, the employer should inform the Social Security authorities through the respective reserved area in their website (“Segurança Social Direta”) which instalment period (3 or 6 months) will be implemented;
  • If the conditions to access this benefit are not met or the beneficiary fails to pay any of the instalments, all the benefits should cease, which means all instalments shall become due immediately and interest will be charged.




© 
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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