Portugal VAT coronavirus measures

17 Mar - the new e-invoice software rules for domestic businesses will continue not to be enforced. The current relation, allowing PDFs to be accepted insted of e-invoices from approved software, is now being extended from 31 March to 30 June 2021.

10 Mar - taxpayers may opt for a six-month payment plan for Nov 2020 to Apr 2021 quarterly and monthly VAT payments. This will be on application, and taxpayers must show ≥25% loss in revenues due to COVID-19 pandemic.

18 Feb - the December and Quarter 4 VAT 2020 returns and payments have been delayed until 24 February and 1 March 2021.

17 Nov - the filing deadlines has been moved from 10th of the second month after the reporting period to the 20th of the second month. This affects September 2020 to March 2021 monthly returns. Plus Q3 and Q4 2020 quarterly returns and the Q1 2021 return. The same applies for the payments - these are moved from the 15th of the second month to 25th of the second month.

26 Aug - the July return filing deadline has been moved from 10 Sept to the 20 Sept. Any VAT due may be paid by 25 Sept. There will be no fines or penalty interest.

3 Aug - VAT credits for small businesses will be refunded within 15 days of the submission of the VAT return. This measure will be in place until the end of 2020.

27 July - annual electronic VAT ledgers delayed until 15 Septermber. The IES / DA submission contains several different annexes (IRC – Corporate Income Tax, IRS – Individual Income Tax, VAT, Stamp Duty and Statistical Information).

6 July - May VAT returns are delayed to 17 July. Payments are due by 25 July. June VAT returns are due by 17 August and payments to 25 August. Quarter 2 returns are now due 22 August, with payments by 25 July.

23 May - VAT on gyms and health club membership is to be reduced to 6%.

15 May - delays to VAT payments as follows:

• March returns to 25 May
• April returns to 25 June
• Q1 returrns to 25 June
• Annual returns to 7 August

1 May - the VAT returns for April and May can be delayed till 18 May and 18 June. Normally, they are due on the 10 of the month following the reporting month. Payment is due by the 25 of the month following the reporting period. The easement is limited to smaller tax payers.

Q1 VAT returns are due by 22 May, with the payment due by 25 May.

Update 10 April - VAT supporting documentation is not required for February submissions where tax payers have been able to provide all transactional reporting via the national e-invocing platform. Also, PDF or scanned invoices will be acceptable evidence for VAT deductibility and audit purposes between March and June 2020.

Update 9 April - February monthly returns, due on 10 April, are now due by 17 April. The associated payment is not now due until 20 April instead of the current 15 April. There will be no late filing penalties or payment interest charges.

Update 31 March - the February monthly return may be delayed until 10 April 2020. This may be based on reported invoices on the Portuguese e-invoice platform without also submitting physical documents and reconciliations. No penalties and interest will be liable on this delay. This is only available for businesses below €10 million.

Portugal has announced a range of payment easements and other support for businesses.

In the second quarter of 2020, VAT payments may be paid as follows by businesses with a turnover not exceeding €10 million per annum. This is an automatic option. For businesses with a turnover about this threshold, an application must be made for a delay. The scheme is available to monthly or quarterly taxpayers.

• Full payment;
• Three-monthly payments without interest charge; and
• Six-monthly payments, including late interest on the final three instalments.

Follow Avalara’s live global coronavirus Covid-19 VAT measures tracker.