Flash News NA 2025/04/14
Flexibility in Tax Payments in Portugal
In the context of developing a business/commercial activity, it is common for companies to go through periods of reduced cash liquidity. In cash flow management, if there are difficulties in paying VAT, the Complementary VAT Deferral Scheme can be used, allowing the payment to be split into up to 3 instalments without penalties.
Flexibilizing the payment of taxes means allowing taxpayers to pay their taxes in a phased, deferred manner, or under special conditions, without excessive penalties.
The Tax Deferral Scheme was introduced by Decree-Law No. 125/2021, dated December 30, and amended by Decree-Law No. 85/2022, dated December 21 – Addition of Article 16.º-C.
This scheme allows taxpayers to pay taxes in instalments:
• For most taxes, a pre-collection phase is created, allowing payment in instalments between the end of the voluntary payment period and the initiation of the executive process (although for VAT and IUC, this application is automatic).
• For VAT – Complementary Deferral of Tax Obligations Scheme, it is possible to pay in instalments even during the voluntary payment period.
How to use this complementary scheme and split VAT payment?
1. Access Requirements
• Regularized tax and social security situation.
• Be a VAT taxpayer (monthly or quarterly regime).
• Applicable to all taxpayers, regardless of:
o Size;
o Billing;
o Business volume;
o Sector of activity.
2. Application Process
• Authentication on the Portuguese Tax Authorities web page.
• Deadline: Until the end of the voluntary payment period for the tax.
• If the tax and social security situation is regularized → automatic and immediate approval.
3. Guarantees and Interest
• No guarantee required.
• No interest due.
4. Payment Conditions in Instalments
• Up to 3 monthly instalments, with a minimum value of €25 each.
o Except for the periods of:
- September and the 3rd quarter → maximum of 2 instalments.
- October → only 1 instalment possible → therefore, not covered by this scheme.
5. Exclusions
• Isolated acts are excluded from this scheme.
6. Payment Method
• The 1st instalment is paid using the reference generated in the periodic declaration submitted.
• The remaining instalments are generated in the plan and must be paid monthly.
• If there are overpayments in the current account, they can only be deducted in the 1st instalment.
• The direct debit (DD) for VAT is not valid in this plan. If you wish to use DD in the plan, you must request it after enrolment.
In case of non-payment or delay in paying any instalment, the plan will be marked as "interrupted," and the corresponding executive tax process (PEF) will automatically begin for the remaining debt.
The Nominaurea team is trained to provide all the necessary support in implementing this scheme.
