Flash News NA 2025/03/25
Portugal - Taxpayers are no longer required to remain in the monthly VAT scheme for three years
A significant change in Portugal’s VAT regime was recently announced: taxpayers are no longer required to remain in the monthly VAT scheme for three years.
Changes in the VAT regime: greater flexibility for businesses
Traditionally, taxpayers who opted for the monthly VAT scheme were bound to this choice for a minimum period of three years. This scheme required the monthly submission of VAT returns, which, for some companies, represented a significant administrative burden.
With the recent legislative amendment, this three-year mandatory period has been eliminated, giving businesses greater flexibility in managing their tax obligations.
Benefits of the change for taxpayers
The main advantage of this change is that companies can now adjust their VAT scheme according to their financial and operational reality. For example, a company that initially chose the monthly scheme but later finds that the quarterly scheme is more suitable for its cash flow and administrative capacity can now make this change without having to wait three years. This flexibility allows for more efficient management tailored to each business's specific needs.
The importance of specialized tax consulting
While the increased flexibility in the VAT scheme brings benefits, it also requires companies to carefully analyse which scheme is most advantageous for their specific situation. In this context, tax consulting plays a crucial role. Having experienced professionals in the tax field can make a significant difference in making informed and strategic decisions.
Conclusion
The removal of the mandatory three-year stay in the monthly VAT scheme represents an opportunity for companies to adjust their tax obligations to their actual needs. However, for a smooth and beneficial transition, it is essential to rely on the support of tax experts.
With its vast experience and commitment to excellence, NOMINAUREA stands out as the ideal partner for businesses seeking to successfully navigate the complex world of taxation.
